Canadian stocks climbed sharply on Friday

Index Update:  After opening above yesterday's close, the benchmark S&P/TSX Composite Index traded firmly positive to reach a new record intra-day high of 31,865.79, and then gave ground before settling at 31,755.82, up by 314.97 points (or 1.00%).

Macro Update:  Data released by Statistics Canada today revealed that on a month-on-month basis, new housing prices in Canada were unchanged in November. Preliminary estimates showed that retail sales jumped 1.2% month-over-month in November (the biggest gain in five months) rebounding from a 0.2% fall in October. On an year-on-year basis, retail sales rose by 2% in October. Prime Minister Mark Carney had stated that formal discussions with the U.S. to review the Canada-United States-Mexico Agreement will begin in January. Under CUSMA, Canada is able to export a majority of goods to the U.S. without suffering any tariffs

Top Movers:  Among the individual stocks, Bitfarms Ltd (11.86%), Celestica Inc (9.21%), Energy Fuels Inc (8.10%), Nexgen Energy Ltd (7.51%), New Gold Inc (6.80%), Ivanhoe Mines Ltd (5.98%), Kelt Exploration Ltd (4.26%), and Tamarack Valley Energy Ltd (2.69%) were the notable gainers.

Our Stance:  Price action is currently consolidating near a critical support zone around 31,600. Sustained holding above this region will be crucial for maintaining positive sentiment and preserving the broader bullish trend. However, a decisive break below 31,400 could signal a loss of near-term momentum and potentially trigger a short-term corrective phase. In such a scenario, supports at 31,200 and 31,100 may act as buffers against deeper downside pressure.

Commodity Update:  The yen hovered near a record low against the euro on Monday after Bank of Japan Governor Kazuo Ueda maintained a cautious tone despite Friday’s rate hike. Rising geopolitical tensions boosted safe-haven demand, with gold climbing 0.71% to $4,418.65 and silver jumping 2.36% to $69.08. Copper rose 0.72% to USD 11,959.00, while Brent crude edged up 0.073% to USD 60.91 after a U.S. tanker interception.

Technical Update:

The S&P/TSX Composite Index climbed 314.92 points, or 1.00%, to close at 31,755.77 on Friday, supported by strong volumes that underscored solid investor participation and sustained bullish momentum. Technically, the index remains in a constructive uptrend, trading well above its 50-period SMA, a key dynamic support. The 14-period RSI at 63.87 reflects healthy buying interest without overbought conditions. Near-term support lies around 31,600; holding above this level keeps sentiment positive. A break below 31,400 may invite short-term correction toward 31,200–31,100.