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Image Souce: Krish Capital Pty Ltd
Index Update: The benchmark S&P/TSX Composite Index closed up 25.69 points or 0.1% at 25,036.46, slightly off the day's high. The index dropped to a low of 24,909.72 a little before noon.
Macro Update: Canada 10 Year Government Bond Yield increased to a 16-week high of 3.38%. Additionally, annual inflation rate in Canada rose to 2% in October from an over-three-year low of 1.6% in the previous month.
Top Movers: Tenaz Energy (TNZ.TO) gained about 5.5%. Tourmaline Oil Corp (TOU.TO) climbed 4.5%. Precision Drilling Corporation (PD.TO) advanced nearly 4%. Keyera Corp (KEY.TO), K-Bro Linen (KBL.TO), CCL Industries (CCL.B.TO), Calian Group (CGY.TO) and Brookfield Renewable Corporation (BEPC.TO) moved up 2 to 3%.
Our Stance: The index is currently testing a crucial support level around 24,500. Holding this level is important for maintaining upward momentum. A breach below 24,400 could signal a retracement risk, with key support levels on the weekly chart identified at around 24,000 to 23,800. To sustain the bullish trend, it is essential for the index to hold above these support levels, ensuring continued growth potential in the near term.
Commodity Update: The U.S. dollar held steady on Thursday as traders awaited more details on President-elect Donald Trump's policies and speculated on the possibility of less aggressive interest rate cuts from the Federal Reserve. In commodities, gold rose by 0.10% to $2,654.40 per ounce, silver gained 0.24% to $31.07, and copper increased 0.26% to $9,113.50 per ton. Brent crude climbed 0.40% to $73.09 per barrel amid supply concerns fueled by escalating geopolitical tensions between Russia and Ukraine. OPEC+ is expected to delay output increases when it meets Dec. 1 due to weak global oil demand.
Technical Update: On Wednesday, the S&P/TSX Composite Index posted a modest gain of 25.69 points, closing at 25,036.46, reflecting a 0.10% increase. This positive performance was supported by strong trading volumes, suggesting continued investor enthusiasm and confidence in the market. The energy sector was a standout contributor to the day's gains, rising by 1.03%, indicating growing optimism in this area. From a technical perspective, the index remains in a favorable position, trading above its 21-period Simple Moving Average (SMA), which signals a bullish trend. The Relative Strength Index (RSI) stands at 66.08, suggesting market strength, but it has not yet reached overbought levels, leaving room for further potential gains. The index is currently testing a crucial support level around 24,500. Holding this level is important for maintaining upward momentum. A breach below 24,400 could signal a retracement risk, with key support levels on the weekly chart identified at around 24,000 to 23,800. To sustain the bullish trend, it is essential for the index to hold above these support levels, ensuring continued growth potential in the near term.