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TSX Ends Marginally Up

By: Team Kalkine | Nov 12, 2024 | Read Time : 10 Mins
TSX Ends Marginally Up

Image Souce: Krish Capital Pty Ltd

Index Update:  The benchmark S&P/TSX Composite Index closed up 29.88 points or 0.12% at 24,789.28, well off the day's high of 24,901.51, but still recorded a new closing high.

Macro Update: Over the next few days, in the U.S the reports on consumer and producer price inflation are likely to attract attention along with reports on retail sales and industrial production this week.

Top Movers: Technology stocks moved up sharply. Several stocks from the financials sector moved higher. Materials shares fell on weak metal prices. Technology stocks Bitfarms (BITF.TO) and Converge Technology Solutions (CTS.TO) closed stronger by about 16.9% and 7.3%, respectively.

Our Stance: Currently, the index is testing a critical support level of around 23,950. 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 23,400 and 23,200. 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 U.S. dollar remained near a four-month high on Tuesday as markets awaited key inflation data and Federal Reserve comments. In commodities, gold rose 0.41% to $2,628.30/oz, silver gained 0.24% to $30.69, and copper increased 0.15% to $9,315.50/ton. Crude oil increased by 0.2% to $71.95 per barrel, recovering slightly after sharp losses the previous day. Investor concerns over China’s underwhelming stimulus measures and disappointing inflation data continued to weigh on oil prices. Meanwhile, the dissipation of Tropical Storm Rafael in the Gulf of Mexico eased fears of supply disruptions in the region.

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Technical Update: On Monday, the S&P/TSX Composite Index edged up by 29.88 points to finish at 24,789.28, marking a 0.12% 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 1.66% and reflecting growing optimism in tech stocks. Technically, the index remains in a strong position above its 50-period Simple Moving Average (SMA), suggesting a bullish trend. The Relative Strength Index (RSI) is at 63.82, 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 23,950. 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 23,400 and 23,200. To sustain its bullish trajectory and continue seizing growth opportunities, it is crucial for the index to hold above these support levels.


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