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Image Souce: Krish Capital Pty Ltd
Index Update: The benchmark S&P/TSX Composite Index posted a new all-time high of 25,593.47 and closed up 55.22 points or 0.22% at 25,543.52.
Macro Update: Data from Statistics Canada showed that average weekly earnings of non-farm payroll employees in Canada rose by 5.2% year-on-year to $1,280.3 in September 2024, the largest increase since March 2021, following a 4.9% increase in August.
Top Movers: Dye & Durham (DND.TO), ATS Corporation (ATS.TO), Morguard Corporation (MRC.TO) and Rogers Communications (RCI.A.TO) climbed 2.3 to 4%. Celestica Inc (CLS.TO), Parkland Corporation (PKI.TO), TFI International (TFII.TO), Bombardier Inc (BBD.B.TO), goeasy (GSY.TO), Cameco Corporation (CCO.TO), Dayforce (DAY.TO) and GFL Environmental (GFL.TO) also closed notably higher.
Our Stance: Currently, the index is testing a critical support level of around 24,850. Maintaining this level is essential for sustaining upward momentum; a drop below could lead to a pullback, with important support thresholds identified at 24,300 and 24,000. For the index to continue its upward trajectory, it’s crucial to stay above these key levels, as they will serve as indicators for future performance. Investors will be watching closely to see if the market can hold this support in the coming days.
Commodity Update: The U.S. dollar weakened against most major currencies on Friday, with trading volumes light due to the Thanksgiving holiday. The British pound reached its highest level since November 20. In the commodities market, gold rose 0.74% to $2,681 per ounce, silver surged 1.30% to $31.08, and copper climbed 0.54% to $9,046.50 per ton. Brent crude saw a slight dip of 0.10%, settling at $73.21 per barrel, amid renewed concerns over supply risks as tensions between Israel and Hezbollah escalated. Investors also awaited an OPEC+ meeting for updates on production policies.
Technical Update: On Thursday, the S&P/TSX Composite Index climbed 55.22 points, closing at 25,543.22 which marks a 0.22% increase fueled by strong investor confidence and active trading. The healthcare sector significantly contributed to this rise, achieving a 1.28% gain. From a technical standpoint, the index is well above its 21-period Simple Moving Average (SMA), signaling a bullish trend that suggests further potential upside. The Relative Strength Index (RSI) is at 75.30, indicating a robust market environment, yet still leaving room for additional growth. Currently, the index is testing a critical support level of around 24,850. Maintaining this level is essential for sustaining upward momentum; a drop below could lead to a pullback, with important support thresholds identified at 24,300 and 24,000. For the index to continue its upward trajectory, it’s crucial to stay above these key levels, as they will serve as indicators for future performance. Investors will be watching closely to see if the market can hold this support in the coming days.