Canadian Stocks Scale New Peak

Source: Krish Capital Pty Ltd

Index Update:

After opening a little above yesterday's close, the benchmark S&P/TSX Composite Index turned lower and hit an intraday low of 29,903.08 before noon after which it gained momentum to inch upwards to finally close at 30,160.59, up by 52.92 points (or 0.18%). Notably, today's value is a new record close for the index.

Macro Update:

The Bank of Canada and the U.S. Federal Reserve are set to announce their respective interest rate decisions on October 29.

The BoC is expected to release baseline projections for the economy and inflation along with its monetary policy report in October. The central bank stopped providing finite estimates for Canada's economy from the second quarter and instead opted to lay out a range of projections based on how U.S. tariffs impact the economy.

In the U.S., the government entered its second day of shutdown which is delaying the release of various key data and figures.

Top Movers:

Among the individual stocks, Curaleaf Holdings Inc (7.07%), Brp Inc (4.29%), Bitfarms Ltd (4.60%), Dye & Durham Ltd (4.00%), and Brookfield Asset Management Ltd (2.01%) were the prominent gainers.

Our Stance:

The index is currently consolidating near a key support zone around 29,900. Sustaining this level will be vital for preserving market confidence and the broader uptrend. Conversely, a decisive break below could indicate short-term bullish exhaustion and open the door for a pullback toward 29,700 and 29,500.

Commodity Update:

The dollar rebounded overnight despite the U.S. government shutdown halting key economic data, including September’s jobs report. Gold rose 0.15% to $3,873.75, silver gained 0.82% to $46.75, and copper edged up 0.18% to $10,510.30. Brent crude added 0.18% to $64.29 after four sessions of losses but remained on track for its steepest weekly fall since June amid expectations that OPEC+ may boost output despite oversupply worries.

Technical Update:

On Thursday, the S&P/TSX Composite Index advanced 52.92 points (0.18%) to close at 30,160.59. The modest gain was accompanied by strong trading volumes, underscoring sustained investor confidence and reinforcing the prevailing bullish momentum. From a technical perspective, the index remains firmly in an uptrend, holding well above its 21-period SMA, which continues to serve as dynamic support. Momentum indicators are robust, with the RSI at 78.91, highlighting persistent buying pressure. The index is currently consolidating near a key support zone around 29,900. Sustaining this level will be vital for preserving market confidence and the broader uptrend. Conversely, a decisive break below could indicate short-term bullish exhaustion and open the door for a pullback toward 29,700 and 29,500.