Canadian stocks moved modestly higher on Monday

Source: Krish Capital Pty Ltd

Index Update:

After opening just above the previous week's close, the benchmark S&P/TSX Composite Index gathered momentum to trade firmly positive throughout the day before finally settling at 29,431.02, up by 147.20 points (or 0.50%).

Macro Update:

The federal budget coming up later this autumn is reported to be focusing on austerity with Carney already asking his ministers to explore spending cuts across all departments.

Yesterday, Carney launched Build Canada Homes, a new federal agency that will build affordable housing at scale to fight homelessness for low-income households.

Data released by Statistics Canada today revealed that Canadian manufacturing sales surged by 2.5% to C$70.3 billion in July 2025 following a 0.3% increase in June.

The country's wholesale sales climbed 1.2% month-on-month to C$86.0 billion in July, the biggest gain since January.

Top Movers:

Among the individual stocks, Bitfarms Ltd (10.00%), Sangoma Technologies Corp (6.02%), Open Text Corp (5.00%), Parex Resources Inc (7.00%) and Aritzia Inc (3.51%) were the prominent gainers.

Our Stance:

The index is currently consolidating near a key support level at 29,200. Sustaining above this point will be crucial for maintaining market confidence and the broader uptrend. Conversely, a clear break below 29,200 may signal weakening bullish momentum, with 29,000 and 28,700 acting as the next support levels.

Commodity Update:

The U.S. dollar weakened on Tuesday as markets awaited the Federal Reserve’s expected policy easing. Gold prices reached a record before slipping 0.06% to $3,716.50. Silver dipped 0.11% to $42.91, and copper declined 0.53% to $10,112.00. Brent crude rose 0.30% to $67.63, extending gains amid Ukraine’s strikes on Russian oil facilities, which heightened supply concerns. Meanwhile, Russia launched a major assault on Zaporizhzhia after recent Ukrainian attacks.

Technical Update:

On Monday, the S&P/TSX Composite Index advanced 147.20 points, or 0.50%, to close at 29,431.02. The gain was supported by robust trading volumes, underscoring investor confidence and reinforcing the prevailing bullish momentum. From a technical standpoint, the index continues to exhibit a firmly bullish structure, trading comfortably above its 21-period Simple Moving Average (SMA) a key short-term trend indicator that remains a dynamic support level. Momentum readings also highlight sustained buying pressure, with the Relative Strength Index (RSI) at a strong 79.03. At present, the index is consolidating around a critical support zone near 29,200. Holding above this threshold will be pivotal in maintaining market confidence and preserving the broader uptrend. However, a decisive breakdown below 29,200 could indicate a short-term exhaustion of bullish momentum, potentially paving the way for a pullback. In such a scenario, the next immediate support levels are identified at 29,000 and 28,700, which may serve as cushions against deeper declines.