On Wednesday TSX extended its previous session's gains

Image Source : Krish Capital Pty Ltd

Index Update:  The Canadian stock market on Wednesday extended its previous session's gains to set a new record today, supported by growing investor confidence about the possibility of an interest rate cut by the Fed. After opening higher than yesterday's close, the benchmark S&P/TSX Composite Index moved up to reach an intra-day high of 27,955.55 in less than an hour. Holding firm, the index remained positive before finally settling at a new record closing high of 27,920.87, up by 350.79 points (or 1.27%).

Macro Update:  S&P Global Canada data revealed that the Composite PMI rose to 48.7 in July 2025 from 44.0 in June. Both the manufacturing (46.1 vs 45.6) and services (49.3 vs 44.3) sectors posted softer downturns. Statistics Canada had reported that exports to the US dropped by 12.5% in June 2025 compared to June 2024.

Top Movers:  Among the individual stocks, Shopify Inc (21.50%), Bitfarms Ltd (4.19%), Ssr Mining Inc (17.09%), Orla Mining Ltd (5.98%), Great-West Lifeco Inc (3.67%), Alimentation Couche-Tard Inc (0.34%), and Premium Brands Holdings (5.76%) were the prominent gainers.

Our Stance:  The index is currently testing a crucial support zone near 27,700. Sustaining above this level is essential to maintain the current upward trajectory. A decisive drop below it could open the door for a pullback toward the next support levels at 27,500 and 27,300 on the daily chart.

Commodity Update:   The dollar slipped against major currencies on Thursday amid rising expectations of Federal Reserve rate cuts and concerns over political influence on U.S. institutions. Gold gained 0.28% to $3,443.10-, while silver rose 0.48% to $38.08. Copper dipped 0.04% to $9,686.40. Brent crude rebounded 0.30% to $67.09, ending a five-day slide, supported by steady U.S. demand and eased supply fears amid potential U.S.-Russia Ukraine talks.

Technical Update:  

The S&P/TSX Composite Index climbed 350.79 points on Wednesday to close at 27,920.87, gaining 1.27% amid strong trading volumes a sign of continued investor confidence. Leading the charge was the technology sector, which surged 9.85%, reflecting renewed optimism and strength within the space. Technically, the index maintains a bullish structure, trading well above its 21-period Simple Moving Average (SMA), a key indicator of short-term trend support. The Relative Strength Index (RSI) stands at 68.09, suggesting strong momentum while still leaving room for further upside before entering overbought territory. The index is currently testing a crucial support zone near 27,700. Sustaining above this level is essential to maintain the current upward trajectory. A decisive drop below it could open the door for a pullback toward the next support levels at 27,500 and 27,300 on the daily chart.