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Image Souce: Krish Capital Pty Ltd
Index Update: The benchmark S&P/TSX Composite Index, which advanced to a new all-time high of 25,478.37, settled at 25,444.28 with a gain of 53.60 points or 0.21%.
Macro Update: On the economic front, retail sales in Canada are expected to have surged by 0.7% from the previous month in October, according to flash estimate. Retails in Canada rose by 0.8% year-on-year in September, following a 1.4% increase in the previous month.
Data from Statistics Canada showed industrial producer prices in Canada rose by 1.2% month-over-month in October, rebounding from a revised 0.8% decline in the previous month. On a yearly basis, producer prices rose by 1.1% in October, after a revised 1% fall in the previous month.
Top Movers: Hut 8 Corp (HUT.TO) zoomed 10.5%. ATS Corporation (ATS.TO) climbed 7.2%. Softchoice Corporation (SFTC.TO), Endeavour Mining (EDV.TO), Finning International (FII.TO), ATCO (ACO.Y.TO), Bombardier Inc (BBD.B.TO), RB Global (RBA.TO), Magna International (MG.TO) and Canadian Pacific Kansas City (CP.TO) gained 2 to 4%.
Our Stance: Currently, the index is testing a critical support level around 24,850. Maintaining this level is essential for sustaining upward momentum; a drop below could lead to a pullback, with important support thresholds identified at 24,300 and 24,000. 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.
Commodity Update: The dollar lost some of its recent strength on Monday as investors anticipated that the U.S. Treasury secretary pick would calm concerns in the bond market, leading to a drop in yields and reducing the dollar's rate advantage. In the commodities market, gold fell by 0.60% to $2,720.70 per ounce, while silver dropped 1.06% to $31.43 per ounce. Copper, however, rose by 0.98% to $9,073.50 per ton. Brent crude increased by 0.20% to $73.50 per barrel amid rising geopolitical tensions between Western powers and major oil producers Russia and Iran, raising supply disruption fears.
Technical Update: On Friday, the S&P/TSX Composite Index climbed 53.60 points, closing at 25,444.28, which marks a 0.21% increase fueled by strong investor confidence and active trading. The industrials 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 71.16, indicating a robust market environment, yet still leaving room for additional growth. Currently, the index is testing a critical support level around 24,850. Maintaining this level is essential for sustaining upward momentum; a drop below could lead to a pullback, with important support thresholds identified at 24,300 and 24,000. 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.