Canadian Stocks Closes Higher

index Update:

Canadian stocks moved to the downside early in the session on Thursday but regained ground over the course of the trading day to close modestly higher.

The benchmark S&P/TSX Composite Index climbed well off its worst levels of the day and into positive territory, closing up 105.65 points or 0.3 percent at 34,517.70.

Macro Update:

Citing two U.S. officials and a regional source involved in the mediation efforts, Axios indicated the MOU would extend the ceasefire and launch negotiations on Iran's nuclear program.

An overnight spike in Crude Oil prices weighed on Bay Street early in the session, but oil pries pulled back well off their highs as the day progressed.

The pullback by oil prices came after a report from Axios said U.S. and Iranian negotiators have reached an agreement on a 60-day memorandum of understanding.

Top Movers:

Mining stocks rebounded as gold prices pared losses, with Agnico Eagle up 1.4%, Wheaton Precious Metals gaining 2.0%, and Barrick adding 0.8%. Tech shares also advanced, led by Shopify (+7.4%) and Constellation Software (+4.0%), tracking gains in US technology stocks.

Our Stance:

The immediate support is seen around the 34,400 level, and a sustained move below this zone could trigger short-term consolidation toward 34,100. On the upside, a decisive breakout above the 34,600-resistance area may reinforce bullish sentiment and potentially pave the way for a move toward the 34,900 mark in the near term.

Commodity Update:  

The U.S. dollar weakened on Friday after reports suggested that Washington and Tehran had reached a 60-day memorandum of understanding to extend the current ceasefire and begin fresh negotiations on Iran’s nuclear program. The development improved risk sentiment across global markets. Gold rose 0.06% to USD 4,534.70 per ounce, while silver gained 0.27% to USD 76.12. Copper slipped 0.06% to USD 13,717.00. Meanwhile, Brent Crude declined 0.50% to USD 93.24 per barrel and remained on track for a weekly loss as investors assessed easing geopolitical tensions between the U.S. and Iran.

Technical Update:

The S&P/TSX Composite Index advanced 105.65 points, or 0.31%, on Thursday to close at 34,517.70. The index continues to trade above its 21-day Simple Moving Average (SMA), which remains an important dynamic support level and supports the broader bullish trend structure. Momentum indicators also remain constructive, with the 14-day Relative Strength Index (RSI) near 57.66, indicating healthy bullish momentum while still leaving room for additional upside before reaching overbought territory. Immediate support is seen around the 34,400 level, and a sustained move below this zone could trigger short-term consolidation toward 34,100. On the upside, a decisive breakout above the 34,600-resistance area may reinforce bullish sentiment and potentially pave the way for a move toward the 34,900 mark in the near term.