Canadian Stocks Bounce Back To New Record High

Image Source : Krish Capital Pty Ltd

Index Update:  Following the pullback seen in the previous session, Canadian stocks showed a notable move back to the upside during trading on Tuesday. The benchmark S&P/TSX Composite Index climbed 169.94 points or 0.6 percent to 28,339.88, more than offsetting yesterday's loss to reach a new record closing high.

Macro Update:  The latest U.S. economic data is also likely to attract attention later this week, as the Commerce Department is due to release a report on Friday that includes the Fed's preferred readings on consumer price inflation.

Top Movers:  The best performers of the session on the S&P/TSX Composite were Energy Fuels Inc. (TSX:EFR), which rose 12.36% or 1.87 points to trade at 17.00 at the close. Meanwhile, Bank of Nova Scotia (TSX:BNS) added 6.85% or 5.45 points to end at 84.98 and Denison Mines Corp (TSX:DML) was up 5.90% or 0.17 points to 3.05 in late trade.

Our Stance:  The index is currently testing key support near 28,100, which will be crucial to sustain the prevailing bullish trend. A breakdown below this level could open the way for a pullback toward 27,800 and 27,600, while holding firm above support would help preserve upward momentum in the sessions ahead.

Commodity Update:  The dollar remained under pressure on Wednesday as concerns over the Federal Reserve’s independence resurfaced after President Trump’s latest move to exert influence on the central bank. Gold inched up 0.01% to $3,433.60, while silver slipped 0.08% to $38.575 and copper eased 0.02% to $9,845.65. Brent crude edged down 0.06% to $66.66, with oil prices steady as markets awaited new U.S. tariffs on India’s Russian crude imports.

Technical Update:

On Tuesday, the S&P/TSX Composite Index gained 169.94 points, or 0.60%, to close at 28,339.88. The advance was underpinned by strong trading volumes, with the basic materials sector leading performance, up 1.51%. Technically, the index remains well above its 21-period Simple Moving Average (SMA), reinforcing a constructive short-term outlook. The Relative Strength Index (RSI) at 68.27 reflects solid momentum. The index is currently testing key support near 28,100, which will be crucial to sustain the prevailing bullish trend. A breakdown below this level could open the way for a pullback toward 27,800 and 27,600, while holding firm above support would help preserve upward momentum in the sessions ahead.