The Canadian market closed on a bright note on Friday

Image Source: Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index fell to 24,250.02 in early trades but recovered soon and then kept moving higher to eventually settle at 24,599.48 with a gain of 185.54 points or 0.76% at 24,599.48.

Macro Update: Data from Statistics Canada showed retail sales in Canada increased 1.5% in October over the same month in the previous year.

Top Movers: Lightspeed Commerce (LSPD.TO) gained about 4%. Sangoma Technologies (STC.TO), Celestica Inc (CLS.TO), Tecsys (TCS.TO) and Shopify Inc (SHOP.TO) gained 1.7 to 2.25%.

Our Stance: With the index holding above its immediate support and displaying strong technical signs, a continued rally could unfold in the upcoming trading sessions. The nearest resistance at 25,000 points, defined by the 21-period Simple Moving Average (SMA), could serve as the initial target for this rally.

Commodity Update: The dollar remained steady on Monday following a modest rise in U.S. inflation last month, easing concerns about the speed of upcoming rate cuts. Investor confidence increased after U.S. lawmakers passed a spending bill, avoiding a government shutdown. In the commodities market, gold dipped 0.14% to $2,641.40, while silver surged 0.88% to $30.22. Copper rose 0.40% to $8,991.50, and Brent crude climbed 0.40% to $73.20 per barrel. The positive economic data on inflation sparked hopes of further policy easing next year, boosting global growth prospects and supporting oil demand.

Technical Update: The S&P/TSX Composite Index rebounded to near its immediate support at 24,098 points, gaining 0.76% last Friday and signaling a positive outlook by forming a Bullish Engulfing candlestick pattern alongside a sharp increase in trading volume. Additionally, the Relative Strength Index (RSI) has bounced back from an oversold territory, further supporting the previous analysis. With the index holding above its immediate support and displaying strong technical signs, a continued rally could unfold in the upcoming trading sessions. The nearest resistance at 25,000 points, defined by the 21-period Simple Moving Average (SMA), could serve as the initial target for this rally.