Canadian stocks rose on Monday

Image Source : Krish Capital Pty Ltd

Index Update:  After opening higher than the last session, the benchmark S&P/TSX Composite Index, today inched up its way to reach a record closing high of 26,857.11, up by 164.79 (or 0.6%).

Macro Update:  The Canadian finance ministry announced that Canada has rescinded the digital tax on US companies and that PM Mark Carney and Trump shall hold talks to reach on a trade deal by July 21.

Top Movers and Losers:  Bausch Health (2.83%), Tilray (3.70%), Torex Gold 4.81(%), and Lundin Gold (6.50%) were the prominent gainer. Moreover, among the individual stocks, Baytex Energy (3.17%), Parex Resources (1.14%), Cenovus Energy (0.91%), and Vermilion Energy (0.90%) were the notable losers.

Our Stance:  Currently, the index is testing a key support level of around 26,600. Holding above this threshold is essential to preserve the prevailing bullish trend. A decisive breakdown below this level could trigger a pullback toward the next support zones near 26,400 and 26,200. Sustained movement above these levels will be crucial for maintaining upward momentum in the sessions ahead.

Commodity Update:  Today, the U.S. dollar hovered near its lowest level since February 2022, weighed down by dovish signals from Federal Reserve Chair Jerome Powell and concerns about former President Donald Trump’s spending bill. Gold fell 0.15% to $3,344.70, silver edged down 0.06% to $36.02, copper rose 0.30% to $9,963.35, and Brent crude increased 0.08% to $67.18 ahead of a key producers' meeting on August output.

Technical Update:  On Monday, the S&P/TSX Composite Index advanced by 164.79 points to close at 26,857.11, marking a gain of 0.62%. The upward move reflects continued investor confidence, supported by robust trading activity, particularly in the healthcare sector, which outperformed with a notable 2.48% surge. From a technical perspective, the index remains comfortably above its 21-period Simple Moving Average (SMA), reinforcing a bullish short-term outlook. The Relative Strength Index (RSI) stands at 68.60, indicating strong momentum, though it is nearing overbought territory. Currently, the index is testing a key support level of around 26,600. Holding above this threshold is essential to preserve the prevailing bullish trend. A decisive breakdown below this level could trigger a pullback toward the next support zones near 26,400 and 26,200. Sustained movement above these levels will be crucial for maintaining upward momentum in the sessions ahead.