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The Canadian market closed on a buoyant note on Wednesday

By: Team Kalkine | Nov 07, 2024 | Read Time : 10 Mins
The Canadian market closed on a buoyant note on Wednesday

Image Souce: Krish Capital Pty Ltd

Index Update:  The benchmark S&P/TSX Composite Index closed with a gain of 249.55 points or 1.02% at 24,637.45, just a few points off the day's high.

Macro Update: The Fed's monetary policy announcement is likely to be in the spotlight on Thursday, overshadowing reports on weekly jobless claims and third quarter labor productivity and costs.

Top Movers: The Information Technology Capped Index climbed 3.01%. Bitfarms (BITF.TO) ended with a hefty gain of 17.8%. Celestica Inc (CLS.TO) rallied nearly 8%, while Quarterhill (QTRH.TO), Computer Modelling (CMG.TO), Converge Technology (CTS.TO) and Descartes Systems Group (DSG.TO) climbed 5.3 to 7%.

Our Stance: The Relative Strength Index (RSI) sits at 61.82, indicating that while the market is in healthy territory, it is not yet overbought. This suggests room for further upside before reaching overbought conditions. The index is currently testing an important support level at approximately 23,800. Holding above this level is critical for sustaining the upward momentum. A drop below this level could prompt a pullback, with key support zones between 23,400 and 23,000.

Commodity Update: The dollar remained near a four-month high on Thursday as markets reacted to Donald Trump's victory in the 2024 U.S. presidential election. Investors shifted focus to upcoming central bank decisions, including the Federal Reserve's rate meeting. Commodities saw mixed results: gold dropped 0.44% to $2,664.50/oz, silver fell 0.40% to $31.19, and copper rose 0.83% to $9,444.50/ton. Crude oil prices increased 0.5% to $75.28 a barrel, with attention also on potential fiscal stimulus in China. Market participants watched closely for economic signals from the FOMC's upcoming policy decisions.

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Technical Update: On Wednesday, the S&P/TSX Composite Index saw a solid gain of 249.55 points, closing at 24,637.45, an increase of 1.02%. This upward movement reflects strong investor confidence and robust trading activity, particularly in the technology sector, which surged by 3.00%. The sector's optimism is helping fuel broader market strength. Technically, the index is holding comfortably above its 21-period Simple Moving Average (SMA), which is a bullish signal, suggesting that the current trend is positive. Additionally, the Relative Strength Index (RSI) sits at 61.82, indicating that while the market is in healthy territory, it is not yet overbought. This suggests room for further upside before reaching overbought conditions. The index is currently testing an important support level at approximately 23,800. Holding above this level is critical for sustaining the upward momentum. A drop below this level could prompt a pullback, with key support zones between 23,400 and 23,000. For continued growth, it will be important for the index to stay above these levels and maintain the bullish trend.


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