Canadian stocks moved mostly higher during trading on Tuesday

Index Update: After moving to the upside early in the session, the benchmark S&P/TSX Composite Index remained firmly positive throughout the day before closing up 143.92 points or 0.5 percent at 30,419.68.

Macro Update: The strength on Bay Street may have reflected optimism about the outlook for interest rates ahead of monetary policy announcements from both sides of the border on Wednesday. Both the Bank of Canada and the U.S. Federal Reserve are widely expected to lower rates by a quarter point for the second straight meeting amid signs of economic weakness, particularly in the labor markets.

Top Movers:  The biggest gainers of the session on the S&P/TSX Composite were Cameco Corp (TSX:CCO), which rose 22.86%. NexGen Energy Ltd. (TSX:NXE) added 11.52% and Denison Mines Corp (TSX:DML) was up 10.00%.

Our Stance: The index is currently consolidating near a key support zone around 30,300, and holding above this level will be critical to maintaining market confidence and preserving the broader upward trajectory. Conversely, a decisive break below this area could indicate fading bullish momentum, potentially leading to a retracement toward 30,100 and 30,000.

Commodity Update:  The U.S. dollar held near a one-week low ahead of the anticipated Federal Reserve rate cut. Gold slipped 0.52% to USD 3,962.40 per ounce, silver fell 0.12% to USD 47.26, and copper eased 0.28% to USD 10,995.00. Brent crude gained 0.30% to USD 64.58 as renewed Israel-Hamas conflict raised supply concerns. Oil prices rebounded after two days of losses, supported by geopolitical tensions and fresh U.S. sanctions on Russia.

Technical Update: 

On Tuesday, the S&P/TSX Composite Index advanced 143.92 points, or 0.48%, to close at 30,419.68. The gain was accompanied by strong trading volumes, underscoring sustained investor confidence and reinforcing the prevailing bullish sentiment. Technically, the index continues to exhibit a well-defined uptrend, trading comfortably above its 21-period Simple Moving Average (SMA), which serves as dynamic support. Momentum indicators remain constructive, with the 14-period Relative Strength Index (RSI) at 57.82, reflecting persistent buying interest. The index is currently consolidating near a key support zone around 30,300, and holding above this level will be critical to maintaining market confidence and preserving the broader upward trajectory. Conversely, a decisive break below this area could indicate fading bullish momentum, potentially leading to a retracement toward 30,100 and 30,000.