Canadian Stocks Tick Higher

Index Update:  After opening below yesterday's close, today the benchmark  S&P/TSX Composite Index  lost ground early in the session but regained momentum later to trade above the flatline throughout the rest of the session before settling at 31,941.59, up by 57.78 points (or 0.18%).

Macro Update:  The Strait of Hormuz, which has been blocked since the gulf war began, is the focus of investors. As an end to the war or a ceasefire could reverse the closure of the narrow seaway and normalize oil flow to the markets and stabilize prices, investors are keenly anticipating any breakthrough development. As the war has set off a grand-scale energy crisis, multiple news outlets reported Pakistan, Egypt, and Turkey offering to broker a third-party negotiation. On March 18, the Bank of Canada delivered a hawkish statement while it left the interest rates at the current level of 2.25%, citing inflationary pressures. With inflation anticipated to continue over the next few months, traders are counting on rate hikes this year.

Top Movers:  Among the individual stocks, Athabasca Oil Corp (4.61%), Kelt Exploration Ltd (3.79%), Birchcliff Energy Ltd (3.35%), Methanex Corp (9.24%), Boralex Inc (7.49%), and 5N Plus Inc (7.11%) were the prominent gainers.

Our Stance: Momentum indicators remain subdued, with the 14-period Relative Strength Index (RSI) hovering around 39.53, signalling mild negative momentum. On the downside, immediate support is placed near 31,700; a decisive break below this level could trigger further consolidation toward the 31,400 zone in the near term. 

Commodity Update:  Currency markets showed early signs of fatigue in Asian trade on Wednesday, as traders remained cautious over U.S. President Donald Trump’s push to end the Iran conflict. While Trump indicated progress in discussions, Iran denied any direct negotiations, keeping uncertainty elevated. Gold surged 4.12% to USD 4,616.20, silver rose 6.07% to USD 73.95, and copper gained 1.53% to USD 12,242.00. Meanwhile, Brent crude declined 6.30% to USD 97.90, slipping below USD 100 amid easing supply concerns.

Technical Update:

On Tuesday, the S&P/TSX Composite Index gained 57.78 points (0.18%) to close at 31,941.59. Despite the recent pullback, the broader market structure continues to reflect a phase of healthy consolidation rather than a definitive trend reversal. From a technical standpoint, the index remains below its 21-period Simple Moving Average (SMA) on the daily chart, which is acting as a dynamic resistance level and suggests a cautious near-term outlook. Momentum indicators remain subdued, with the 14-period Relative Strength Index (RSI) hovering around 39.53, signalling mild negative momentum. On the downside, immediate support is placed near 31,700; a decisive break below this level could trigger further consolidation toward the 31,400 zone in the near term.