Canadian stocks showed a modest move back to the upside

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Index Update:  The benchmark S&P/TSX Composite Index briefly pulled back below the unchanged line after an early advance but bounced back into positive territory as the day progressed. The index closed up 54.88 points or 0.2 percent at 27,878.76.

Macro Update:  Traders seemed reluctant to make more significant moves ahead of Federal Reserve Chair Jerome Powell's highly anticipated speech at the Jackson Hole Economic Symposium on Friday. Powell's remarks could have a significant impact on the outlook for interest rates ahead of the Fed's next monetary policy meeting in September.

Top Movers:  Among the individual stocks, G Mining Ventures Corp: GMIN, which rose 8.21% or 1.45 points to trade at 19.11 at the close. Meanwhile, Barrick Gold Corporation: ABX added 3.67% or 1.22 points to end at 34.48 and Agnico-Eagle Mines Ltd: AEM was up 3.45% or 6.24 points to 186.85 in late trade.

Our Stance: The index is currently testing key support around 27,700, a level crucial for maintaining the prevailing bullish trend. A decisive break below this zone could trigger a pullback toward 27,600 and 27,400, while sustained trade above support would help preserve upward momentum in the sessions ahead.

Commodity Update:  The U.S. dollar eased Thursday as concerns grew over the Federal Reserve’s independence following fresh criticism from President Trump, ahead of Chair Jerome Powell’s upcoming remarks. Gold slipped 0.13% to $3,384.20, while silver rose 0.31% to $37.89 and copper edged down 0.02% to $9,733.15. Brent crude gained 0.50% to $67.20, supported by a sharp decline in U.S. inventories, with markets also tracking the prospects for a Russia-Ukraine peace deal for supply cues.

Technical Update: 

On Wednesday, the S&P/TSX Composite Index advanced 54.88 points to finish at 27,878.76, up 0.20%. The gain was supported by firm trading volumes, with the basic materials sector outperforming, rising 1.89%. From a technical perspective, the index remains well above its 21-period Simple Moving Average (SMA), reinforcing a positive near-term outlook. The Relative Strength Index (RSI) stands at 61.90, indicating solid momentum. The index is currently testing key support around 27,700, a level crucial for maintaining the prevailing bullish trend. A decisive break below this zone could trigger a pullback toward 27,600 and 27,400, while sustained trade above support would help preserve upward momentum in the sessions ahead.