Canadian Stocks Pull Back Modestly

By: Team Kalkine | Jul 21, 2025 | Read Time : 10 Mins
Canadian Stocks Pull Back Modestly

Image Source : Krish Capital Pty Ltd

Index Update:  Canadian stocks saw a modest dip on Friday as investors opted for profit taking to realize the gains made over this week when the market reached record-high levels. After opening above yesterday's close, the benchmark S&P/TSX Composite Index, reached an intraday high of 27,422.06 in less than an hour. After falling into negative territory, the index hovered around before finally settling at 27,314.01, down by 72.92 (or 0.27%).

Macro Update:  Statistics Canada reported on Wednesday that the gap between the nation's highest and lowest household income reached a record high in the first quarter of 2025. Weeks before, Canada began its LNG export to Asia. The Canadian foreign minister is set to tour Asian countries to sign bilateral trade agreements. Yesterday's data from the US revealing a resilient job market and decent retail sales growth, has drowned the hopes for any immediate interest rate cuts by the Federal Reserve. Trump has expressed his displeasure over high interest rates and strongly criticized Fed Chair Jerome Powell.

Top Movers:  Premium Brands Holdings (2.57%), Alimentation Couche-Tard Inc (1.93%), Capital Power Corp (2.32%), and Headwater Exploration Inc (3.77%) were the prominent gainers.

Our Stance:  Technically, the focus now shifts to key support levels. The index is currently holding above the near-term support zone at 27,000, a critical threshold for maintaining bullish momentum. If this level holds, it could trigger renewed buying interest and pave the way for a potential rebound toward recent highs. However, a decisive break below 27,000 may increase selling pressure and signal a deeper correction ahead.

Commodity Update: The Japanese yen strengthened on Monday, bolstered by rising global political uncertainty as investors flocked to safe-haven assets. With risk sentiment weakening, the yen's stability was reaffirmed. Precious metals saw gains: gold rose 0.53% to $3376.40, silver increased 0.25% to $38.56, and copper advanced 0.77% to $9,864.90. Brent crude edged up 0.01% to $69.34, as traders assessed the impact of European sanctions on Russian oil and potential tariffs.

Technical Update:

On Friday, the S&P/TSX Composite Index posted a modest retreat, slipping 72.92 points, or about 0.27%, to close at 27,314.01. The decline was mainly driven by broad-based weakness in the healthcare sector, which dropped by a notable 1.77%. Despite this pullback, the index remains comfortably above its 21-period Simple Moving Average (SMA) a key technical indicator that often acts as dynamic support in trending markets. This suggests the short-term uptrend is still intact, and the recent dip may represent healthy consolidation rather than the beginning of a broader reversal. Technically, the focus now shifts to key support levels. The index is currently holding above the near-term support zone at 27,000, a critical threshold for maintaining bullish momentum. If this level holds, it could trigger renewed buying interest and pave the way for a potential rebound toward recent highs. However, a decisive break below 27,000 may increase selling pressure and signal a deeper correction ahead.


Disclaimer-

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.