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Image Souce: Krish Capital Pty Ltd
Index Update: The market ended higher despite weak commodity prices triggering some heavy selling in energy and materials sectors. The benchmark S&P/TSX Composite Index, which rose to a new all-time high of 25,024.93, ended the session with a gain of 133.73 points or 0.54% at 24,923.01.
Macro Update: A highly anticipated report on the U.S consumer price inflation is due to be released on Wednesday, while reports on producer price inflation, retail sales and industrial production are likely to attract attention later in the week.
Top Movers: Converge Technology (CTS.TO), Sylogist (SYZ.TO) and Lightspeed Commerce (LSPD.TO) gained 5.95%, 5% and 3.75%, respectively. Bitfarms (BITF.TO) rallied 2.75%.
Our Stance: Currently, the index is testing a critical support level near 23,850. Maintaining this level is essential to keep the bullish momentum intact. A breakdown below this support could trigger a pullback, with further key support levels at 23,400 and 23,000 to watch for. For the index to continue its upward trajectory, holding above these support zones is crucial.
Commodity Update: The U.S. dollar held near a 6-1/2-month high, while Bitcoin remained just below its record highs, as markets eyed upcoming U.S. inflation data. The October Consumer Price Index (CPI) report, expected later, is forecast to show a 0.3% rise in core inflation, which could impact expectations for a December rate cut. Gold surged 0.44% to $2,617.45 per ounce, silver rose 1.11% to $31.11, and copper climbed 0.34% to $9,179.50 per ton. Brent crude slipped to $71.86 a barrel after OPEC revised its demand outlook lower, with broader concerns over the U.S. economy and Trump election speculation.
Technical Update: The S&P/TSX Composite Index had a solid day on Tuesday, gaining 133.73 points, or 0.54%, to close at 24,923.01. This gain reflects a continuation of strong investor sentiment and solid trading volumes, with the technology sector playing a major role by rising 6.38%. From a technical standpoint, the index is in a strong position, staying well above its 50-period Simple Moving Average (SMA), a sign of a prevailing bullish trend. Additionally, the Relative Strength Index (RSI) at 66.96 suggests that the market is in good health and has room for potential upside, though it's approaching overbought territory, which could warrant caution. Currently, the index is testing a critical support level near 23,850. Maintaining this level is essential to keep the bullish momentum intact. A breakdown below this support could trigger a pullback, with further key support levels at 23,400 and 23,000 to watch for. For the index to continue its upward trajectory, holding above these support zones is crucial.