Canadian Stocks Trades Bit Higher

Index Update:  After opening just below the previous week's close, today the benchmark S&P/TSX Composite Index traded volatile earlier in the session but gained ground later before settling at 33,181.97, up by 73.75 points (or 0.22%).

Macro Update:  On the data front, the S&P Global's Composite Purchasing Managers' Index for Canada recorded 47.60 in March, up from 47.10 in February. The PMI Business Activity Index rose to 47.20 in March from 46.50 in February, indicating a solid decline in activity, despite being the best score in five months.

Top Movers:  Among the individual stocks, Dollarama Inc (1.74%), Canadian Tire Corporation (1.55%), Mda Space Ltd (6.76%), and Nfi Group Inc (2.74%) were the prominent gainers.

Our Stance:  Momentum indicators suggest only moderate strength, with the 14-period Relative Strength Index (RSI) hovering around 54.83. On the downside, immediate support is seen near the 32,800 level. A sustained break below this threshold could extend the consolidation phase, potentially dragging the index toward the 32,500 zone in the near term.

Commodity Update:  On Tuesday, the U.S. dollar strengthened against major currencies after Iran rejected a ceasefire proposal and President Donald Trump intensified threats toward Tehran. Investor sentiment remained cautious amid fears of a wider Middle East conflict and an approaching diplomatic deadline. Gold slipped 0.26% to USD 4,672.05 per ounce, silver declined 0.27% to USD 72.61, while copper rose 0.68% to USD 12,422.00. Brent crude also gained 0.40% to USD 110.00.

Technical Update:

On Monday, the S&P/TSX Composite Index advanced by 73.75 points (0.22%) to close at 33,181.97, reflecting a resurgence in buying interest. Despite the recent pullback, the broader market structure continues to point toward a phase of healthy consolidation rather than signaling a definitive trend reversal. From a technical perspective, the index remains above its 21-period Simple Moving Average (SMA) on the daily chart, which is acting as a dynamic support and helping to maintain a constructive near-term bias. However, momentum indicators suggest only moderate strength, with the 14-period Relative Strength Index (RSI) hovering around 54.83. On the downside, immediate support is seen near the 32,800 level. A sustained break below this threshold could extend the consolidation phase, potentially dragging the index toward the 32,500 zone in the near term.