Canadian Stocks Closed Slightly Higher

Index Update:  After plunging by as much as 1.5 percent in early trading, the benchmark S&P/TSX Composite Index climbed well off its lowest and into positive territory before eventually closing up 72.82 points or 0.2 percent at 30,326.46.

Macro Update:  Statistics Canada released a report showing Canadian manufacturing sales surged by 3.3 percent in September, driven by higher sales of transportation equipment and petroleum and coal products. Meanwhile, Canada's wholesale trade rose 0.6% month-on-month to C$85.9 billion in September, the sixth increase in nine months, reversing a 1.2% decline in August and beating initial estimates for stagnation.

Top Movers:  he biggest gainers of the session on the S&P/TSX Composite were CES Energy Solutions Corp (TSX:CEU), which rose 16.37% or 1.56 points to trade at 11.09 at the close. Celestica Inc. (TSX:CLS) added 5.91% or 24.29 points to end at 435.00 and Bombardier Inc (TSX:BBDb) was up 5.75% or 11.79 points to 216.79 in late trade.

Our Stance:  At present, the index consolidates around a crucial support area near 30,200. Holding above this level will be essential to sustain investor sentiment and preserve the broader uptrend. However, a clear break below 30,200 could indicate fading bullish momentum and pave the way for a short-term pullback, with immediate support levels at 30,000 and 29,900 likely to limit deeper downside pressure.

Commodity Update:  The dollar edged higher on Monday as traders awaited a wave of U.S. economic data after the government shutdown ended, seeking clearer cues on the Fed’s December rate outlook. Gold dipped 0.40% to USD 4,078.40, while silver inched up 0.08% to USD 50.72, and copper was nearly flat at USD 10,837.40. Brent crude slipped 0.90% to USD 63.81 as exports resumed at Russia’s Novorossiysk port.

Technical Update: 

On Friday, the S&P/TSX Composite Index gained 72.82 points (+0.24%) to close at 30,326.46, supported by strong trading volumes that reflected firm investor confidence and reinforced the ongoing bullish momentum. Technically, the index retains a solid upward structure, trading well above its 50-period Simple Moving Average (SMA), which continues to serve as a key dynamic support. Momentum indicators echo this strength, with the Relative Strength Index (RSI) standing at 52.93. At present, the index consolidates around a crucial support area near 30,200. Holding above this level will be essential to sustain investor sentiment and preserve the broader uptrend. However, a clear break below 30,200 could indicate fading bullish momentum and pave the way for a short-term pullback, with immediate support levels at 30,000 and 29,900 likely to limit deeper downside pressure.