Canada's stock market scaled a new high on Friday

Image Source : Krish Capital Pty Ltd

Index Update: After opening just around Thursday's close, the benchmark S&P/TSX Composite Index traveled in the positive territory to reach an intra-day high of 27,516.03 before settling at 27,494.35, up by 122.09 or 0.45 percent. This is a new record high for the TSX Composite Index.

Macro Update: By and large, most Canadian products are currently exempt from the U.S. tariffs if they are shipped under the rules of the U.S.-Canada-Mexico Agreement, a pact which Trump himself signed during his first term. Investors are anticipating eagerly for the key events next week including monetary policy decisions from Bank of Canada as well as the U.S. Federal Reserve along with earnings report from "tech giants. Economists have shrugged off any chances of lowering interest rates by BoC as recent economic data - both from Canada and the U.S. - have not shown dramatic decline in businesses and jobs amid tariff war.

Top Movers:  Among the individual stocks, Lightspread Commerce Inc (4.75 percent), Celestica Inc (4.24 percent), Tfi International (5.48 percent), and Firstservice Corp (3.63 percent) were the prominent gainers.

Our Stance: The index is currently testing a critical support zone near 27,000. Holding above this level is crucial for maintaining upward momentum. A decisive break below 27,000 could signal the potential for a retracement, with the next key support levels seen between 26,800 and 26,600 on the daily chart.

Commodity Update: The euro strengthened on Monday following a trade agreement between the U.S. and the EU, reducing tariffs to 15% from a threatened 30%. The deal, announced by President Trump and European Commission President Ursula von der Leyen in Scotland, aims to prevent a global trade war. Gold rose 0.03% to $3,393.55, silver surged 0.20% to $38.44, copper gained 0.28% to $9,814.50, and Brent crude increased 0.32% to $68.66.

Technical Update:

On Friday, the S&P/TSX Composite Index climbed 122.09 points to close at 27,494.35, marking a gain of 0.45%. The advance reflects sustained investor confidence, supported by strong trading volumes, with the technology sector leading the way with a notable 1.57% increase. Technically, the index remains comfortably above its 21-period Simple Moving Average (SMA), underscoring a positive short-term outlook. The Relative Strength Index (RSI) is at 70.89, highlighting strong momentum but also signalling overbought conditions. The index is currently testing critical support near 27,200. Maintaining this level is important to uphold the current bullish trend. A break below could open the door for a pullback toward the next support zones around 26,800 and 26,600. Sustained trading above these levels will be vital for preserving upward momentum in the sessions ahead.