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Image Souce: Krish Capital Pty Ltd
Index Update: The Canadian market hit new intraday and closing highs on Thursday. The benchmark S&P/TSX Composite Index, which posted a new high 25,760.15 around mid afternoon, gave up some gains, and settled at 25,680.04, up 38.86 points or 0.15% from Wednesday's close.
Macro Update: Economists currently expect the U.S employment to jump by 200,000 jobs in November after inching up by 12,000 jobs in October, while the unemployment rate is expected to tick up to 4.2 percent from 4.1 percent. The jobs data could impact the outlook for interest rates ahead of the Federal Reserve's next monetary policy meeting later this month.
Top Movers: Capital Power Corporation (CPX.TO) climbed 6%. First Quantum Minerals (FM.TO) rallied 5.2%. Cineplex (CGX.TO) gained nearly 4.5%. Bombardier Inc (BBD.B.TO), Loblaw Companies (L.TO), Celestica Inc (CLS.TO), Cameco Corporation (CCO.TO), George Weston (WN.TO), iA Financial Corporation (IAG.TO) and Hut 8 Corp (HUT.TO) closed up 2 to 3.5%.
Our Stance: The index is currently testing a critical support level at 25,200. Holding above this level is crucial for sustaining the upward momentum. A breakdown below this support could signal a potential pullback, with additional support levels identified between 25,200 and 24,800 on the weekly chart. To maintain its bullish trajectory, the index must stay above these support zones, continuing to capitalize on growth opportunities in the market.
Commodity Update: Major currencies held steady on Friday as markets reflected on a turbulent week marked by the collapse of France's government and brief martial law in South Korea. Bitcoin paused after surging above $100,000, with even sceptics anticipating that a crypto-friendly Trump administration could fuel further gains. The U.S. non-farm payrolls report for November took centre stage as investors speculated on the pace of potential Federal Reserve rate cuts. In commodities, gold slipped 0.04% to $2,647.20, silver rose 0.30% to $31.63, and copper climbed 0.23% to $9,115.50. Brent crude edged lower by 0.10% to $72.00 amid concerns over weak demand and OPEC+ supply cuts, extended through 2026.
Technical Update: On Thursday, the S&P/TSX Composite Index gained 38.86 points, closing at 25,680.04, which represents a 0.15% increase. This uptick was driven by robust trading volumes, reflecting sustained investor confidence and optimism, especially in the energy and tech sectors. The energy sector was a key contributor, rising by 0.78%, supported by growing optimism in the broader tech market. Technically, the index remains in a strong position, trading above its 21-period Simple Moving Average (SMA), which suggests a continued bullish trend. The Relative Strength Index (RSI) is at 75.75, indicating a healthy market with momentum, but not yet in overbought territory, leaving room for further upward movement. The index is currently testing a critical support level at 25,200. Holding above this level is crucial for sustaining the upward momentum. A breakdown below this support could signal a potential pullback, with additional support levels identified between 25,200 and 24,800 on the weekly chart. To maintain its bullish trajectory, the index must stay above these support zones, continuing to capitalize on growth opportunities in the market.