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Image Souce: Krish Capital Pty Ltd
Index Update: The benchmark S&P/TSX Composite Index closed up 66.01 points or 0.26% at 24,989.02. The index touched a low of 24,860.56 and a high of 25,002.96 in the session.
Macro Update: Data from the Labor Department said the consumer price index crept up by 0.2% in October. The report also said the annual rate of consumer price growth accelerated to 2.6% in October from 2.4% a month earlier. The rate of core consumer price growth was unchanged from the previous month at 3.3%, which was also in line with estimates.
Top Movers: CAE Inc (CAE.TO) ended with a big gain of 12%. Shopify Inc (SHOP.TO), Tecsys Inc (TCS.TO), Hammond Power Solutions (HPS.A.TO), Hut 8 Corp (HUT.TO), ATS Corporation (ATS.TO) and Molson Coors Canada (TPX.B.TO) gained 3 to 6%.
Our Stance: From a technical perspective, the index’s position above the 21-period Simple Moving Average (SMA) keeps it in a prevailing uptrend. The Relative Strength Index (RSI) at 68.42 suggests the market has some room for further upside, though caution is warranted as the index approaches overbought territory. If momentum continues, further gains could be expected in the short term, with the next resistance level possibly around the 25,200 mark.
Commodity Update: The U.S. dollar reached a one-year high against major currencies on Thursday, continuing a fourth consecutive day of gains driven by momentum from Donald Trump's election victory, overshadowing rising expectations for Federal Reserve rate cuts. In commodities, gold dropped 0.70% to $2,568.40 per ounce, silver declined 1.27% to $30.26, and copper fell 0.59% to $8,962 per ton. Brent crude slipped 0.1% to $72.23 amid weak U.S. inventory data, while markets awaited further demand signals from China and the International Energy Agency. Oil prices remained under pressure after OPEC reduced its demand forecast for the fourth month.
Technical Update: The recent performance of the S&P/TSX Composite Index demonstrates a solid bullish sentiment, with the session showing strong buying interest, as evidenced by the bullish candle formation and higher trading volume. The closing gain of 66.01 points (0.26%) to 24,989.02 signals a positive shift, although it’s relatively modest in percentage terms. The standout sectors, technology (+2.35%) and energy (+0.79%), show broad market strength, particularly in tech, which has been gaining momentum amid growing investor interest in innovation and growth. Meanwhile, the healthcare sector’s small pullback (-0.48%) may reflect profit-taking or sector-specific challenges, but it’s not significant enough to suggest a broader downturn. From a technical perspective, the index’s position above the 21-period Simple Moving Average (SMA) keeps it in a prevailing uptrend. The Relative Strength Index (RSI) at 68.42 suggests the market has some room for further upside, though caution is warranted as the index approaches overbought territory. If momentum continues, further gains could be expected in the short term, with the next resistance level possibly around the 25,200 mark.