Canadian Stocks Failed to Carry the Momentum on Monday

Image Source : Krish Capital Pty Ltd

Index Update: The index then rallied to hit the day's high of 26,681.74 within an hour or so, but unable to carry the momentum, fell gradually to settle at 26,568.61, still up by 64.26 or 0.24%.

Macro Update: In Canadian economic news, separate reports released by Statistics Canada showed manufacturing sales and wholesale sales tumbled by 2.8% and 2.3%, respectively, in April.

All eyes are on the G7 summit in Kananaskis, Alberta, where leaders have convened to ensure stability in stock and commodity markets as well as in advancing trade deals.

Top Movers: Blackberry (6.29%), Lightspeed Commerce (3.98%), Shopify (2.72%), Aritizia (3.44%), and Fairfax (1.93%) were the prominent gainers. G Mining Ventures (6.21%), Torex Gold (4.66%), Baytex (3.53%), Jamieson Wellness (1.12%), and Parex Resources (4.35%) were among the notable losers.

Our Stance: The index remains well above its 21-period Simple Moving Average (SMA), supporting a bullish short-term outlook. The index tests a key support level of around 26,200. Holding above this level is critical to sustaining the current uptrend. A break below could trigger a pullback toward 25,800 and 25,600. Continued strength above these levels will be vital to maintain upward momentum in the sessions ahead.

Commodity Update: The U.S. dollar edged slightly on Tuesday, while most currencies traded within narrow ranges amid persistent Middle East tensions and anticipation of key central bank decisions. Gold slipped 0.13% to $3,412.45, silver inched up 0.02% to $36.47, and copper declined 0.32% to $9,679.35. Brent crude rose 0.30% to $73.46 as President Donald Trump warned Tehran over the Israel-Iran conflict, which fueled supply disruption concerns.

Technical Update: On Monday, the S&P/TSX Composite Index rose 64.26 points to close at 26,568.61, gaining 0.24%. The advance reflects continued investor confidence, driven by strong trading activity, particularly in the technology sector, which outperformed with a 1.36% increase. Technically, the index remains well above its 21-period Simple Moving Average (SMA), supporting a bullish short-term outlook. The Relative Strength Index (RSI) is at 68.90, signaling strong momentum while nearing overbought territory. The index tests a key support level of around 26,200. Holding above this level is critical to sustaining the current uptrend. A break below could trigger a pullback toward 25,800 and 25,600. Continued strength above these levels will be vital to maintain upward momentum in the sessions ahead.