TSX Climbs to New Record High

Image Souce: Krish Capital Pty Ltd

Index Update:  The benchmark S&P/TSX Composite Index, which climbed to a new record high of 25,402.06, ended the session with a gain of 354.22 points or 1.41% at 25,390.68.

Macro Update: The Canadian government unveiled a mini stimulus package. The measures announced by the government will cost the Canadian treasury an estimated 6.3 billion Canadian dollars, and include a temporary, two-month sales-tax exemption on certain goods and services. Furthermore, the Liberal government will issue a onetime tax-free cash transfer of C$250 to individuals who earn less than C$150,000 Canadian dollars a year.

Data from Statistics Canada showed industrial producer prices in Canada rose by 1.2% month-over-month in October, rebounding from a revised 0.8% decline in the previous month. On a yearly basis, producer prices rose by 1.1% in October, after a revised 1% fall in the previous month.

Top Movers: Dayforce Inc (DAY.TO), Tourmaline Oil Corp (TOU.TO), AtkinsRealis Group (ATRL.TO), Magna International (MG.TO), Constellation Software (CSU.TO), Royal Bank of Canada (RY.TO), TFI International (TFII.TO), Shopify Inc (SHOP.TO), Metro Inc (MRU.TO), Stantec Inc (STN.TO), Canadian Pacific Kansas City (CP.TO), Canadian National Railway (CNR.TO), West Fraser Timber (WFG.TO) and Dollarama (DOL.TO) climbed 2 to 3.7%.

Our Stance: A dip below 24,700 could trigger a retracement risk, with the 24,200 to 24,000 range serving as important support on the weekly chart. As long as these support levels hold, the broader market sentiment remains positive, and there's potential for further growth. However, a breach of these levels would raise concerns about a potential pullback, urging caution for the near term. Overall, the outlook is constructive, with key levels to watch closely for signs of trend continuation or reversal.

Commodity Update: The U.S. dollar remained near a 13-month high on Friday as investors weighed the Federal Reserve's future interest rate decisions, while European uncertainty kept the euro under pressure. Bitcoin approached the $100,000 mark, attracting investor attention. In commodities, gold rose 0.63% to $2,691.50 per ounce, silver gained 0.35% to $31.05, and copper edged up 0.12% to $9,043.50 per ton. Meanwhile, Brent crude climbed 0.20% to $74.37 per barrel after Russia launched a ballistic missile at Ukraine and hinted at an expanding conflict, raising concerns over potential disruptions in global oil supplies.

Technical Update: The S&P/TSX Composite Index showed strong performance on Thursday, advancing by 354.22 points (up 1.41%) to close at 25,390.68, bolstered by robust trading volumes that reflect ongoing investor optimism. A notable highlight was the technology sector, which led the rally, gaining 2.19%, suggesting heightened confidence in tech stocks. From a technical perspective, the index remains on solid footing, comfortably above its 21-period Simple Moving Average (SMA), reinforcing a bullish trend. The Relative Strength Index (RSI) of 70.47 indicates healthy momentum without nearing overbought territory, leaving potential room for further gains. The index is now testing a key support level around 24,700, which will be critical in determining the next phase of the market. Holding above this level is vital to sustaining the current bullish momentum. A dip below 24,700 could trigger a retracement risk, with the 24,200 to 24,000 range serving as important support on the weekly chart. As long as these support levels are held, the broader market sentiment remains positive, and there's potential for further growth. However, a breach of these levels would raise concerns about a potential pullback, urging caution for the near term. Overall, the outlook is constructive, with key levels to watch closely for signs of trend continuation or reversal.