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Index Update: The benchmark S&P/TSX Composite Index ended with a gain of 122.58 points or 0.48% at 25,434.08, rising for the eighth consecutive session.
Macro Update: On the economic front, data from Statistics Canada showed that retail sales in Canada increased 1.6% in November 2024, over the same month in the previous year. According to preliminary estimates, retail sales are expected to surge 1.6% month-over-month in December 2024. That will be the biggest gain since May 2022.
Top Movers: Canadian Tire Corporation (CTC.A.TO), goeasy (GSY.TO), TerraVest Industries (TVK.TO), George Weston (WN.TO), Methanex Corporation (MX.TO), Nutrien (NTR.TO), E-L- Financial Corporation (ELF.TO) and MTY Food Group (MTY.TO) gained 2 to 4.5%.
Our Stance: Technically, the index remains in a favorable position, staying above its 21-period Simple Moving Average (SMA), signaling that the bullish trend is intact. The Relative Strength Index (RSI) of 62.59 suggests there's still potential for further upside without entering overbought territory. That said, the index is testing a key support level around 25,000. If it holds above this level, the path could be clear for continued growth.
Commodity Update: On Friday, the yen dominated currency markets ahead of the Bank of Japan's (BOJ) anticipated interest rate hike, with a 25-basis-point increase widely expected. The U.S. dollar was set for its worst week in two months. In commodities, gold rose 0.34% to $2,775.50, silver gained 1.35% to $31.26, and copper increased by 0.42% to $9,282.50. However, Brent crude experienced a slight drop of 0.50%, settling at $77.95, following pressure from U.S. President Donald Trump on OPEC and Saudi Arabia to reduce prices and boost oil production. The BOJ's policy decision remains a key focus.
Technical Update: On Thursday, the S&P/TSX Composite Index posted a modest but encouraging gain, up 122.58 points to close at 25,434.08, marking a 0.48% increase. This upward movement, supported by solid trading volumes, indicates a continued sense of confidence among investors. The utilities sector was the standout performer of the day, gaining 1.06%, which signals an optimistic outlook both for the sector and the broader market. Technically, the index remains in a favorable position, staying above its 21-period Simple Moving Average (SMA), signaling that the bullish trend is intact. The Relative Strength Index (RSI) of 62.59 suggests there's still potential for further upside without entering overbought territory. That said, the index is testing a key support level around 25,000. If it holds above this level, the path could be clear for continued growth. However, a break below this threshold could introduce retracement risks, with important support zones to monitor between 24,700 and 24,200. Whether the index can maintain its position above these critical levels will likely determine the near-term market sentiment and prospects for further upside.