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Image Source : Krish Capital Pty Ltd
Index Update: The benchmark S&P/TSX Composite Index, which climbed to 25,446.17, gaining more than 200 points in the process, pared most of its gains and ended the session just 37.59 points or 0.15% up at 25,279.35.
Macro Update:Still, with the U.S. and China slapping levies on each other, worries about global economic outlook lingered, rendering the mood cautious.
Top Movers: Mattr Corp (MATR.TO), Transcontinental (TII.TO), New Gold (NG.TO), Hudbay Minerals (HBM.TO), Bombardier Inc (BBD.B.TO), MEG Energy (MEG.TO), Crescent Point Energy (CPG.TO), Oceanagold (OGC.TO), Real Matters (REAL.TO) and Precision Drilling (PD.TO) moved up 3 to 4%.
Our Stance: From a technical standpoint, the index is well above its 21-period Simple Moving Average (SMA), signaling a bullish trend that suggests further potential upside. The Relative Strength Index (RSI) is at 51.92, indicating a robust market environment, yet still leaving room for additional growth. Currently, the index is testing a critical support level around 24,900. Maintaining this level is essential for sustaining upward momentum; a drop below could lead to a pullback, with important support thresholds identified at 24,900 and 24,500.
Commodity Update: On Wednesday, the dollar gave up some of its recent gains as investors perceived increased chances for the Federal Reserve to ease policy later this year, fueling a rally in Treasuries. In the commodities market, gold rose 0.20%, reaching $2,881.10, while silver dipped 0.59% to $32.83, and copper gained 0.05% to $9,182.20. Brent crude fell 0.24% to $76.02, as markets downplayed the impact of China's tariffs on U.S. energy imports. However, President Trump's renewed efforts to curb Iranian crude exports offered some support. Investors await U.S. Non-Farm Payroll data for clearer insights on future rate decision.
Technical Update: On Tuesday, the S&P/TSX Composite Index climbed 37.59 points, closing at 25,279.35, which marks a 0.15% increase fueled by strong investor confidence and active trading. The energy sector significantly contributed to this rise, achieving a 1.07% gain. From a technical standpoint, the index is well above its 21-period Simple Moving Average (SMA), signaling a bullish trend that suggests further potential upside. The Relative Strength Index (RSI) is at 51.92, indicating a robust market environment, yet still leaving room for additional growth. Currently, the index is testing a critical support level around 24,900. Maintaining this level is essential for sustaining upward momentum; a drop below could lead to a pullback, with important support thresholds identified at 24,900 and 24,500. For the index to continue its upward trajectory, it’s crucial to stay above these key levels, as they will serve as indicators for future performance. Investors will be watching closely to see if the market can hold this support in the coming days.