Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index closed up 130.30 points or 0.52% at 25,419.45, after scaling a low of 25,277.05 and a high of 25,425.86 intraday.

Macro Update: Investors now await monetary policy announcement from the Bank of Canada. The central bank is widely expected to cut interest rate on Wednesday.

The Federal Reserve is also scheduled to announce its monetary policy tomorrow. The Fed is likely to hold rates, but the focus is on the accompanying statement.

Top Movers: Blackberry (BB.TO) gained 6.5% and Sylogist (SYZ.TO) ended 3.8% up. Open Text Corp (OTEX.TO), Constellation Software (CSU.TO), Dye & Durham (DND.TO), Lightspeed Commerce (LSPD.TO), Kinaxis Inc (KXS.TO), Enghouse Systems (ENGH.TO) and CGI Group Inc (GIB.A.TO) closed higher by 1.3 to 3%.

Our Stance: From a technical perspective, the index remains in a favorable position, trading above its 21-period Simple Moving Average (SMA), which is indicative of a bullish trend. Currently, the index is testing a crucial support level around 25,000. The ability to maintain this level is important for sustaining the upward momentum. A breach below 24,800 could signal a retracement risk, with key support levels on the weekly chart identified as around 24,000 to 24,600.

Commodity Update: The U.S. dollar gained against the yen on Wednesday following fresh tariff threats from the Trump administration and easing concerns over a low-cost Chinese AI model. In commodities, gold increased by 0.10% to $2,797.90, silver remained at $30.85, while copper dropped by 0.31% to $8,999.50. Brent crude saw a minimal decrease of 0.01%, closing at $77.47 per barrel, as market participants weighed the potential effects of U.S. tariffs on Canadian and Mexican imports. Meanwhile, the focus shifted to upcoming updates on the Federal Reserve's interest rate decisions and U.S. GDP data later in the week.

undefined

Technical Update: On Tuesday, the S&P/TSX Composite Index posted a modest gain, advancing 130.30 points to close at 25,419.45 marking an increase of 0.52%. This positive performance was supported by strong trading volumes, reflecting sustained investor enthusiasm and confidence in the market. A standout contributor to the day's gains was the technology sector, which rose by 4.41%, suggesting growing optimism in this space. From a technical perspective, the index remains in a favorable position, trading above its 21-period Simple Moving Average (SMA), which is indicative of a bullish trend. The Relative Strength Index (RSI) stands at 60.03, signaling strength in the market but without reaching overbought conditions, leaving room for further gains. Currently, the index is testing a crucial support level around 25,000. The ability to maintain this level is important for sustaining the upward momentum. A breach below 24,800 could signal a retracement risk, with key support levels on the weekly chart identified as around 24,000 to 24,600. For the bullish trend to remain intact, it is essential for the index to hold above these support levels, ensuring continued growth potential in the near term.

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!