The Canadian stocks closed lower on Wednesday

Image Source : Krish Capital Pty Ltd

Index Update:  The S&P/TSX Composite Index slipped 0.6% to 26 566 on Wednesday, breaking its previous day high as weaker commodity prices weighed on Canada's resource-rich market.

Macro Update:  Statistics Canada released a report showing retail sales climbed by 0.8 percent in March, led by increases at motor vehicle and parts dealers. Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, edged up by 0.2 percent in March.

Top Movers:  The biggest gainers of the session were BlackBerry Ltd (TSX:BB), which rose 12.98% or 0.77 points to trade at 6.70 at the close. Sprott Inc. (TSX:SII) added 4.92% or 4.36 points to end at 92.93 and Celestica Inc. (TSX:CLS) was up 3.59% or 7.09 points to 204.47 in late trade.

Our Stance:  Notably, the index is now testing a critical support level of around 26,300. Holding above this threshold is essential to preserving bullish momentum. A sustained break below this level could open the door to a deeper pullback, with next-tier support located at 25,900 and 25,600.

Commodity Update:  The U.S. dollar slipped to a 3.5-year low against the euro on Thursday amid concerns over the Federal Reserve's independence. Reports suggested President Trump should consider replacing Fed Chair Jerome Powell, which shook investor confidence. Gold rose 0.36% to $3,355.20, silver gained 0.55% to $36.31, and copper added 0.54% to $9,782.00. Brent crude climbed 0.20% to $67.80, supported by strong U.S. demand and Middle East ceasefire uncertainties.

Technical Update:  The S&P/TSX Composite Index closed at 26,566.32, registering a 0.57% decline in Thursday’s session. The energy sector led the downturn with a 0.82% drop, putting notable pressure on overall market sentiment. From a technical perspective, the index continues to hold above its 21-period Simple Moving Average (SMA), supporting a cautiously bullish outlook. The Relative Strength Index (RSI) stands at 62.42, suggesting a stable momentum environment with scope for further upside, key support levels are maintained. Notably, the index is now testing a critical support level of around 26,300. Holding above this threshold is essential to preserving bullish momentum. A sustained break below this level could open the door to a deeper pullback, with next-tier support located at 25,900 and 25,600.