Canadian stocks edged higher on Wednesday

Index Update: The benchmark S&P/TSX Composite Index fell quickly early in the session but then gained momentum to inch its way up through the session to finally close at 30,501.99, up by 150.27 points (or 0.50%).

Macro Update: The Canadian economy is showing signs of weakness with growing unemployment. Canadian steel, aluminum, automobiles and copper industries are suffering due to Trump's tariffs. The additional levies Trump imposed on lumber are set to hit later this month.

Today, the yield on Canada's two-year-bond eased to 2.45%, marking a 0.01 percentage points decrease from the previous session.

Top Movers: Among the individual stocks, Bitfarms Ltd (15.05%), Celestica Inc Sv (7.15%), First Majestic Silver Corp (11.30%), K92 Mining Inc (10.88%), Capstone Mining Corp (9.92%), and Hudbay Minerals Inc (8.34%) were the prominent gainers.

Our Stance: The index is currently consolidating near a key support zone around 30,300, and being above this level will be essential to maintain market confidence and preserve the broader uptrend. Conversely, a decisive break down below this support could indicate signs of bullish exhaustion, opening the door for a potential pullback toward 30,100 and 29,900.

Commodity Update: The dollar held firm on Thursday, heading for its best weekly performance in nearly a year, supported by a weakening yen following Japan’s political transition. Gold slipped 0.69% to $4,041.45, while silver fell 1.54% to $48.20. Copper gained 0.88% to $10,779.70. Brent crude declined 0.60% to $65.86 as U.S. President Donald Trump announced the first phase of an Israel-Hamas ceasefire, alongside rising U.S. crude inventories.

Technical Update:

On Wednesday, the S&P/TSX Composite Index gained 150.27 points, or 0.50%, to close at 30,501.99. The advance was accompanied by strong trading volumes, indicating sustained investor confidence and reinforcing the prevailing bullish momentum. Technically, the index remains in a firm uptrend, trading comfortably above its 21-period Simple Moving Average (SMA), which continues to provide dynamic support. Momentum indicators also stay constructive, with the RSI at 76.80, reflecting persistent buying pressure. However, as the RSI approaches overbought territory, short-term caution is warranted. The index is currently consolidating near a key support zone around 30,300, and being above this level will be essential to maintain market confidence and preserve the broader uptrend. Conversely, a decisive break down below this support could indicate signs of bullish exhaustion, opening the door for a potential pullback toward 30,100 and 29,900.