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Image Souce: Krish Capital Pty Ltd
Index Update: The benchmark S&P/TSX Composite Index, which posted a new intraday high at 25,743.53 in early trades, dropped to a low of 25,573.61 and finally ended the session at 25,641.18, up 5.45 points or 0.02%.
Macro Update: Data from S&P Global showed that the S&P Global Canada Composite PMI rose to 51.5 in November 2024, up from 50.7 in October, marking the fastest private sector growth since May 2022 and a second consecutive month of expansion.
The S&P Global Canada Services PMI rose to 51.2 in November 2024, the highest since April 2023, up from 50.4 in the prior month. Although the services sector posted a second month of growth, the expansion remained modest overall with new business largely unchanged since October.
Top Movers: Hut 8 Corp (HUT.TO) climbed nearly 8%. Spin Master Corp (TOY.TO), MDA Space (MDA.TO), Descartes Systems Group (DSG.TO), Winpak (WPK.TO) and Guardian Capital Group (GCG.TO) gained 3 to 5%.
Our Stance: Currently, the index is testing a critical support level of around 25,200. Maintaining this support is vital for keeping the upward momentum intact. A drop below this level could trigger a potential pullback, with key support levels on the weekly chart identified between 25,200 and 24,800. To sustain its bullish trajectory and continue seizing growth opportunities, it is crucial for the index to hold above these support levels.
Commodity Update: The euro edged up against the U.S. dollar on Wednesday but retreated from session highs after the French government faced a no-confidence vote, signalling potential collapse. Meanwhile, U.S. Federal Reserve Chair Jerome Powell stated that the economy is stronger than expected in September, signalling support for a slower pace of interest-rate cuts. In commodities, gold slipped 0.18% to $2,671.60, silver fell 0.42% to $31.77, and copper decreased 0.20% to $9,087.50. Brent crude rose 0.20% to $72.43 per barrel, with investors awaiting OPEC+ decisions on supply cuts and monitoring Middle East tensions.
Technical Update: On Wednesday, the S&P/TSX Composite Index edged up by 5.45 points to finish at 25,641.18, marking a 0.02% increase. This gain was bolstered by robust trading volumes, underscoring sustained investor confidence and enthusiasm. The technology sector played a significant role in the day's positive performance, rising by 1.51% and reflecting growing optimism in tech stocks. Technically, the index remains in a strong position above its 21-period Simple Moving Average (SMA), suggesting a bullish trend. The Relative Strength Index (RSI) is at 74.87, indicating that while the market is healthy and strong, it is not yet in overbought territory, which leaves room for further upward movement. Currently, the index is testing a critical support level of around 25,200. Maintaining this support is vital for keeping the upward momentum intact. A drop below this level could trigger a potential pullback, with key support levels on the weekly chart identified between 25,200 and 24,800. To sustain its bullish trajectory and continue seizing growth opportunities, it is crucial for the index to hold above these support levels.