Two TSX Financials Stocks Shift to Neutral
Bank of Nova Scotia and Toronto-Dominion Bank saw their Altra Scores drop on July 23, moving from Bullish to Neutral, despite the sector's strength.
- Visit the stock pages: BNS, TD
- Sector XFN , which ranks #1 for Relative Strength (Altra Sector score of 100.0 with bullish regime.)
Momentum analysis on the Toronto Stock Exchange (TSX) today highlights a notable shift within the CA Financials sector, as two of its major constituents, Bank of Nova Scotia (BNS) and Toronto-Dominion Bank (TD), saw their momentum indicators decline from Bullish to Neutral in a single session. This move warrants closer inspection, especially considering the broader market and sector context. AltraOne's proprietary Altra Score offers a comprehensive view of a stock's momentum, ranging from 0-100, integrating EMA alignment and RSI trends across daily, weekly, and monthly timeframes. A higher score signifies more bullish momentum. The Altra Market score provides a market-wide perspective, reflecting the percentage of stocks above key Exponential Moving Averages (EMAs), offering insight into overall market breadth. Similarly, the Altra Sector score applies this analysis at the sector level, complemented by a relative-strength rank against other sectors.
Bank of Nova Scotia (BNS)
Bank of Nova Scotia experienced a significant momentum shift on July 23, with its Altra Score falling from a strong 77.7 to 59.6, consequently shifting its regime from Bullish to Neutral. This change suggests a weakening in the stock's upward drive, even though its price remains positioned above key Exponential Moving Averages (EMAs). EMAs are widely used technical indicators that show the average price of a security over a specified period, with prices above them often indicating an uptrend. The stock's Relative Strength Index (RSI), a momentum oscillator measuring the speed and change of price movements, stands at 50.72 daily, 72.52 weekly, and 84.93 monthly. While the weekly and monthly RSI readings indicate strong underlying momentum, the daily RSI hovering around 50 suggests a more balanced or even waning short-term strength.
This individual stock's shift occurs within a somewhat complex market backdrop. The broader Altra Market score currently sits at 52.2, indicating a 'Mixed' market with mixed signals. This is further reflected in the market breadth data, where only 41.67% of stocks are above their 20-day EMA, 55.0% above their 50-day EMA, and 61.67% above their 200-day EMA. The market also saw more declines than advances, with 23 advances against 37 declines. Over the last 15 days, the Altra Market score has trended downwards by 14.8 points. However, the CA Financials sector, to which BNS belongs, presents a contrasting picture. Its Altra Sector score is a perfect 100.0, ranking it #1 and firmly in a 'Bullish' regime. The sector is characterized as a 'Confirmed leader, holding steady,' with a 4-week relative strength trend of +2.81, a healthy EMA spread of 7.94, and a strong relative strength RSI of 77.9. This suggests that while BNS is experiencing a deceleration, the underlying sector strength remains robust.
Toronto-Dominion Bank (TD)
Similarly, Toronto-Dominion Bank also registered a notable momentum change on July 23, with its Altra Score declining from 79.2 to 59.2, mirroring BNS's move from a Bullish to a Neutral regime. Like BNS, TD's price remains above its key EMAs, indicating that despite the momentum dip, the longer-term trend hasn't fully reversed. The daily RSI for TD is 48.21, while its weekly and monthly RSIs are 76.92 and 89.27, respectively. The daily RSI below 50 suggests a short-term loss of upward momentum, consistent with the Altra Score's shift to Neutral. This aligns with the stock's bullish Weekly EMA Crossover recorded on January 17, 2025, which indicated a strengthening long-term trend, but the recent score drop points to a more immediate cooling off.
TD's momentum shift also plays out against the same 'Mixed' Altra Market backdrop, characterized by a score of 52.2 and a negative 15-day score trend. The market breadth and advance/decline data are identical to BNS's context, reinforcing the cautious tone for the broader TSX. Yet, the resilience of the CA Financials sector, with its top ranking and 'Confirmed leader, holding steady' status, provides a potential cushion. The sector's strong relative strength trend and high RSI suggest that while individual giants like TD and BNS are facing short-term headwinds, the overall momentum for Canadian financials remains robust. This divergence between individual stock performance and sector strength suggests that while traders and investors might observe short-term consolidation in these major bank stocks, the sector as a whole continues to exhibit strong underlying characteristics.
What is the Altra Score? The Altra Score is AltraOne's proprietary momentum score for individual stocks, ranging from 0 to 100. It measures EMA structure and RSI momentum across multiple timeframes. A score above 60 is Bullish, below 40 is Bearish, and 40–60 is Neutral. The score is updated every trading day after market close based on end-of-day data.
Explore the full Signal History on AltraOne to see every EMA crossover signal across your watchlist — going back 52 weeks. The weekly EMA crossover is AltraOne's highest-conviction intermediate momentum signal; the Signal History page lets you track how these have played out over time.
Altra Score is a momentum indicator reflecting EMA alignment and RSI trend across daily, weekly, and monthly timeframes. It is not investment advice. Past momentum does not guarantee future performance. Please consult a SEBI-registered advisor before making investment decisions.