TSX Ends More Than 1% Up

Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index ended with a gain of 265.21 points or 1.06% at 25,393.45. The index gained about 1% in the week but posted a month loss of over 1%.

Macro Update: Data from Statistics Canada said the Canadian GDP rose by 0.6% over a quarter in the three months to December of 2024, following an upwardly revised 0.3% increase in the prior period.

The Canadian GDP increased by 0.3% from the previous month in January of 2025, according to a flash estimate.

Top Movers: Pembina Pipeline Corporation rallied 7.1%. GFL Environmental climbed 5%. Royal Bank of Canada, Enbridge, IGM Financial, TMX Group, RB Global, Canadian Pacific Kansas City, Brookfield Wealth Solutions gained 2 to 5%.

Our Stance: the index is well above its 50-period Simple Moving Average (SMA), indicating a bullish trend. Currently, the index is testing a key support level around 25,100. It is crucial for the index to hold above this support to maintain its upward momentum. A drop below this level could lead to a pullback, with additional support levels seen between 24,800 and 24,600.

Commodity Update: The euro bounced back from a 2.5-week low against the U.S. dollar on Monday, with the British pound also gaining as Europe led efforts for peace in Ukraine. The Canadian dollar and Mexican peso strengthened after U.S. Commerce Secretary Howard Lutnick suggested tariffs may be less than the expected 25%. In commodities, gold rose 1.08% to $2,879.14, silver climbed 1.20% to $31.87, and copper gained 0.40% to $9,402.50. Brent crude oil increased by 1.10% to $73.57, fueled by uncertainty over a U.S.-brokered peace deal and bargain buying, though prices remained near their lowest of the year.

Technical Update: On Friday, the S&P/TSX Composite Index gained 265.21 points, closing at 25,363.45, marking a 1.06% increase that reflects strong investor confidence and solid trading activity. The industrials sector was a major contributor to this rise, advancing by 1.62% due to the optimistic sentiment surrounding stocks. From a technical standpoint, the index is well above its 50-period Simple Moving Average (SMA), indicating a bullish trend. The Relative Strength Index (RSI) stands at 51.14, signaling a healthy market without signs of being overbought, leaving room for further upside potential. Currently, the index is testing a key support level around 25,100. It is crucial for the index to hold above this support to maintain its upward momentum. A drop below this level could lead to a pullback, with additional support levels seen between 24,800 and 24,600. For continued growth, it is essential for the index to remain above these key levels.