Canadian stocks moved higher during trading on Thursday

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/TSX Composite Index rose 0.80% to close at 25,897.48 on Thursday, its eighth consecutive session of gains and a fresh all-time high, after strength in mining and financials counterbalanced weakness in energy.             

Macro Update: Canadian manufacturing sales saw a moderate contraction of 1.4% month-over-month in March to CAD 71.9 billion, yet this was less severe than anticipated. Declines were broad-based across most industries, notably in primary metals (-6.5%) and petroleum/coal products (-4.2%), although furniture sales provided a strong positive offset (+11.9%). Regionally, most provinces experienced lower sales, with Ontario (-1.0%) and Quebec (-1.6%) leading the decrease. In April, Canadian housing starts exhibited a significant surge, jumping 30% month-over-month to 278,606 units, considerably exceeding market forecasts. Urban starts drove this growth (+28%), particularly in Montréal (+64%) and Vancouver (+6%) due to increased multi-unit projects, while Toronto saw a notable decline (-25%).

Top Movers and Losers: The biggest gainers of the session on the S&P/TSX Composite were Atkinsrealis Group Inc (TSX: ATRL), which rose 10.93%. MDA Ltd (TSX: MDA) added 7.72% and Secure Energy Services Inc. (TSX: SES) was up 6.90%. Biggest losers included Baytex Energy Corp (TSX: BTE), which fell 8.27%. Vermilion Energy Inc. (TSX: VET) declined 4.35% and Capstone Mining Corp (TSX: CS) down 4.07%.

Our Stance: The index remains in a firm uptrend, trading above its 21-period Simple Moving Average (SMA). The Relative Strength Index (RSI) sits at 70.43, reflecting strong bullish momentum while still staying just below overbought territory, suggesting potential for further upside. The index is currently testing a key support level around 25,500. Maintaining this level is critical to preserving the bullish outlook.

Commodity Update: The dollar declined alongside U.S. Treasury yields on Friday after weaker-than-expected U.S. economic data fueled expectations of further Federal Reserve rate cuts this year. Gold fell 0.12% to $3,222.40, silver dropped 0.08% to $32.65, and copper edged down 0.08% to $9,579.75. Meanwhile, Brent crude rose 0.26% to $64.70, heading for a weekly gain of over 1% as optimism over U.S.-China trade talks outweighed concerns about Iranian supply returning.

Technical Update: On Thursday, the S&P/TSX Composite Index rose by 205.03 points, or 0.80%, closing at 25,897.48. The advance was led by the industrials sector, which gained 2.04%, buoyed by renewed optimism in technology stocks. From a technical perspective, the index remains in a firm uptrend, trading above its 21-period Simple Moving Average (SMA). The Relative Strength Index (RSI) sits at 70.43, reflecting strong bullish momentum while still staying just below overbought territory, suggesting potential for further upside. The index is currently testing a key support level around 25,500. Maintaining this level is critical to preserving the bullish outlook. A breakdown below it could lead to a pullback, with the next significant support zone between 25,300 and 25,000 on the weekly chart. To sustain its upward momentum, the index must continue to hold above these key technical levels.