The Canadian market ended slightly down on Thursday

Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index ended down by 8.97 points or 0.04% at 25,060.24. The index, which tumbled to 24,923.12 in early trades, climbed to 25,174.97 around late morning, but retreated to around 25,000 before recovering some lost ground.

Macro Update: Data from Statistics Canada showed the industrial product price index grew 0.4% month over month in February and increased 4.9% year over year. The index rose 1.6% month over month in January and increased 5.8% year over year.

Top Movers: Celestica Inc, MDA, Secure Energy Services, Orla Mining, TerraVest Industries, Kelt Exploration, Denison Mines, Vermilion Energy, Keyera Corp, Paramount Services, Methanex, TC Energy, AltaGas and Parex Resources gained 1.5 to 4%.

Our Stance: The index remains above its 21-period Simple Moving Average (SMA), supporting a bullish outlook. Currently, the index is testing a crucial support level around 24,700. Maintaining this level is essential to sustaining the upward trend, while a break below could lead to a pullback, with key support zones between 24,500 and 24,200. To continue its rally, the index must demonstrate resilience above these critical levels.

Commodity Update: The U.S. dollar strengthened on Friday, marking its best performance in three weeks, supported by the Federal Reserve's stance on not rushing to cut interest rates. Meanwhile, the Australian and New Zealand dollars remained weak after significant losses on Thursday, impacted by concerns over the economic toll from U.S. President Donald Trump’s aggressive global trade tariffs. In commodities, gold fell 0.17% to $3,038.70, silver dropped 0.64% to $33.77, and copper declined 0.17% to $9,914.20. However, Brent crude rose 0.60% to $72.46, driven by new U.S. sanctions on Iran and OPEC+ production cuts signaling tighter future supplies.

Technical Update: On Thursday, the S&P/TSX Composite Index closed at 25,060.24, registering a slight decline of 0.04%. The technology sector experienced the most pressure, slipping 0.52%, which dampened broader market sentiment. Despite this, the index remains above its 21-period Simple Moving Average (SMA), supporting a bullish outlook. The Relative Strength Index (RSI) stands at 52.73, reflecting a stable market with room for potential gains. Currently, the index is testing a crucial support level around 24,700. Maintaining this level is essential to sustaining the upward trend, while a break below could lead to a pullback, with key support zones between 24,500 and 24,200. To continue its rally, the index must demonstrate resilience above these critical levels.