Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index, which stayed in positive territory right through the day's session, closed with a gain of 153.37 points or 0.6% at 25,657.70, slightly off the day's high of 25,674.74.

Macro Update: The Bank of Canada said it decided to reduce its target for the overnight rate by 50 basis points to 3.25%, with the Bank Rate at 3.75% and the deposit rate at 3.25%.

Top Movers: Novagold (NG.TO), the top gainer in the index, soared more than 9%. Ssr Mining (SSRM.TO) surged 7.7% and Equinox Gold Corp (EQX.TO) rallied 7.1%. New Gold (NGD.TO), Silvercrest Metals (SIL.TO), Iamgold Corp (IMG.TO), Kinross Gold Corp (K.TO), Seabridge Gold (SEA.TO), Alamos Gold (AGI.TO), Aya Gold and Silver (AYA.TO), First Majestic Silver (AG.TO) and Wheaton Precious Metals (WPM.TO) closed up 3.6 to 6.1%.

Our Stance: The index is currently testing a critical support level around 24,700. Holding this level is crucial for maintaining upward momentum. A drop below 25,200 could signal the beginning of a retracement, with key support levels on the weekly chart found between 25,200 and 24,900. As long as these support levels hold, the bullish trend should remain intact, leaving room for further growth in the near term.

Commodity Update: The U.S. dollar traded in a narrow range on Thursday after reaching a two-week high in the previous session, supported by rising U.S. Treasury yields. Despite this, market players anticipate the Federal Reserve may cut rates next week. November’s consumer price index (CPI) showed a 0.3% increase, the largest rise since April, following four consecutive 0.2% gains. Additional inflation data will be released later with the producer price index (PPI). In commodities, gold fell 0.33% to $2,747.80 per ounce, silver dropped 0.16% to $32.92, and copper gained 0.64% to $9,236.50 per ton. Oil prices were also subdued, with Brent crude falling 0.01% to $73.47 per barrel, as weak demand forecasts and a higher-than-expected rise in U.S. gasoline and distillate inventories offset concerns over new EU sanctions on Russian oil.

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Technical Update: The S&P/TSX Composite Index showed solid performance on Wednesday, closing up 153.37 points, or 0.60%, to finish at 25,657.70. This rise was driven by strong investor sentiment, as evidenced by higher trading volumes, suggesting continued confidence in the market. The technology sector was a major contributor, gaining 1.42%, reflecting growing optimism in this space. Technically, the index remains in a bullish position, trading above its 21-period Simple Moving Average (SMA), which typically signals continued upward momentum. Additionally, the Relative Strength Index (RSI) at 68.05 indicates the market is in a strong position, but it hasn't reached overbought territory yet, which suggests room for further gains. The index is currently testing a critical support level around 24,700. Holding this level is crucial for maintaining upward momentum. A drop below 25,200 could signal the beginning of a retracement, with key support levels on the weekly chart found between 25,200 and 24,900. As long as these support levels hold, the bullish trend should remain intact, leaving room for further growth in the near term.

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