Canadian stocks moved higher on Thursday

index Update:

Canadian stocks edged higher on Thursday, building on the previous session’s gains, as investors responded positively to ongoing diplomatic efforts aimed at easing U.S.-Iran tensions. However, continued disruptions to shipping through the Strait of Hormuz limited further upside.

After opening below yesterday's close, today the benchmark S&P/TSX Composite Index gained momentum and traded positive throughout the rest of the session before settling at 34,409.49, up by 247.67 points (or 0.72%).

Macro Update:

Currently, Iran's Foreign Ministry is reportedly reviewing the U.S. response to its 14-point peace proposal which it sent to the U.S a few days before.

Yesterday, Trump stated that the U.S.-Iran negotiations are right on the borderline. However, adopting a conflicting stance Trump observed that the U.S. is ready to go for a war if it does not get the right answers from Iran. At the same time, he stated that a deal could happen very quickly.

Iran's semi-official Fars news agency had earlier stated that the U.S. asked Iran to hand over around 400 kilograms of highly enriched uranium and restrict Iran's nuclear activity to a single Facility.

Top Movers:

Among the individual stocks, Magna International Inc (4.08%), Gildan Activewear Inc (2.04%), Transalta Corporation (3.92%), Toronto-Dominion Bank (1.78%), and Intact Financial Corporation (2.24%) were the prominent gainers.

Our Stance:

The immediate support is positioned near the 34,300 level, and a sustained move below this zone could trigger a period of consolidation toward the 34,000 mark. On the upside, a decisive breakout above the 34,600 resistance area would likely strengthen bullish sentiment further and could pave the way for an advance toward the 34,800 level over the near term.

Commodity Update:

The U.S. dollar remained near six-week highs, while oil prices stayed volatile as investors monitored ongoing U.S.-Iran peace talks. Gold declined 0.47% to USD 4,523.20, silver slipped 0.54% to USD 76.61, while copper gained 0.52% to USD 13,597.50. Brent Crude rose 2.30% to USD 104.96 amid concerns over unresolved disagreements related to Iran’s uranium stockpile and potential controls on the Strait of Hormuz, although markets still remained on track for a weekly decline.

Technical Update:

The S&P/TSX Composite Index advanced 247.67 points, or 0.72%, on Thursday to close at 34,409.49, reflecting renewed buying interest and improving overall market sentiment. From a technical perspective, the index continues to trade above its 50-day Simple Moving Average (SMA), which remains a reliable dynamic support level and reinforces the prevailing positive trend structure. Momentum indicators also remain constructive, with the 14-day Relative Strength Index (RSI) holding at 59.05, signaling steady bullish momentum while still leaving room for further upside before entering overbought territory. Immediate support is positioned near the 34,300 level, and a sustained move below this zone could trigger a period of consolidation toward the 34,000 mark. On the upside, a decisive breakout above the 34,600 resistance area would likely strengthen bullish sentiment further and could pave the way for an advance toward the 34,800 level over the near term.