Canadian Stocks Started 2026 on a Higher Note

Index Update: The S&P/TSX Composite Index climbed 170.61 points or 0.5 percent to 31,883.37, snapping a four-day losing streak. The higher closure on Bay Street came as energy stocks moved significantly higher despite a modest decrease in the price of crude oil, driving the S&P/TSX Capped Energy Index up by 1.8 percent.

Macro Update: On the economic front, manufacturing PMI in Canada increased to 48.6 points in December from 48.4 points in November, data from S&P Global showed.

Top Movers: Celestica, goeasy, Brookfield Renewable Corporation, West Fraser Timber, Bombardier, MDA Space, TFI International, AtkinsRealis, ATS Corporation, Magna International and Brookfield Business Partners moved up 2 to 3.4%

Our Stance: Price action is currently consolidating near an important support zone around 31,800. Holding above this level will be critical to maintaining positive sentiment and preserving the broader upward trend. Conversely, a decisive break below this zone could signal weakening momentum and open the door for a corrective move toward 31,600 and 31,500.

Commodity Update: The U.S. dollar began the first full trading week of the new year on a firm note, hitting a three-and-a-half-week high against the euro and strengthening versus sterling, while overall moves stayed modest. Sentiment was influenced by the U.S. capture of Nicolas Maduro. Gold surged 2.09% to USD 4,420.10, silver jumped 6.27% to USD 75.44, and copper climbed 2.62% to USD 12,844.00. Brent crude rose 0.30% to USD 60.90, as markets assessed Venezuela developments and OPEC+ keeping output unchanged amid geopolitical tensions.

Technical Update:

On Friday, the S&P/TSX Composite Index advanced 170.61 points, or 0.54%, to close at 31,883.37, supported by healthy trading volumes that underscored strong investor confidence and reinforced the prevailing bullish momentum. From a technical perspective, the index continues to trade comfortably above its 21-period Simple Moving Average (SMA), which is acting as a key dynamic support and validating the strength of the short-term uptrend. Momentum indicators remain constructive, with the 14-period RSI at 61.37, signaling sustained buying interest. Price action is currently consolidating near an important support zone around 31,800. Holding above this level will be critical to maintaining positive sentiment and preserving the broader upward trend. Conversely, a decisive break below this zone could signal weakening momentum and open the door for a corrective move toward 31,600 and 31,500.