Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index ended with a loss of 68.72 points or 0.27% at 25,563.11.

Macro Update: The U.S data is showing a bigger than expected increase in U.S. consumer price inflation increased speculation the Federal Reserve will leave interest rates on hold for a prolonged period.

Top Movers: BlackBerry (BB.TO), Cineplex (CPG.TO), MAG Silver Corp (MAG.TO), SilverCrest Metals (SIL.TO), Pan American Silver Corp (PAAS.TO) and Toromont Industries (TIH.TO) posted strong gains.

Our Stance: Technically, the index remains above the 21-period Simple Moving Average (SMA), signaling a continued short-term uptrend. The Relative Strength Index (RSI) at approximately 56.43 supports this bullish sentiment, indicating underlying strength and potential for further gains. Key support is identified around the 25,200 level, aligning with a crucial horizontal trendline.

Commodity Update: The U.S. dollar remained near a one-week high against the Japanese yen on Thursday, following a hotter-than-expected consumer price report. Meanwhile, the euro received support as news broke that Washington plans to initiate talks with Russia to end the ongoing war in Ukraine. U.S. President Donald Trump also hinted at imposing reciprocal tariffs on countries charging duties on U.S. imports, fueling concerns of an escalating global trade war that could further drive-up U.S. inflation. Commodities saw mixed results: gold rose 0.19% to $2934.20, while silver and copper slipped 0.16% and 0.23%, respectively. Brent oil dropped 0.73% to $74.63 amid expectations of easing sanctions if a peace deal is reached.

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Technical Update: The S&P/TSX Composite Index experienced a negative session, forming a bearish candle on increased trading volume. Despite ongoing challenges, the index closed significantly lower, declining 68.72 points (-0.27%) to settle at 25,563.11. The energy sector led the decline, dropping 2.21%, possibly due to sector-specific pressures or profit-taking. Technically, the index remains above the 21-period Simple Moving Average (SMA), signaling a continued short-term uptrend. The Relative Strength Index (RSI) at approximately 56.43 supports this bullish sentiment, indicating underlying strength and potential for further gains. Key support is identified around the 25,200 level, aligning with a crucial horizontal trendline. Holding above this level could pave the way for renewed upward momentum. However, a breakdown below this support may trigger a deeper pullback, with potential downside targets near 25,000 and 24,500.

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