TSX Ends Nearly 1% Up

Image Source : Krish Capital Pty Ltd

Index Update: Canadian equities performed well on Monday, as investors focusing on future central bank meetings and economic data rather than trade war concerns. The benchmark S&P/TSX Composite Index ended with a gain of 231.71 points or 0.94% at 24,785.11.

Macro Update: Data from Canada Mortgage and Housing Corporation said housing starts in Canada decreased to 229,000 units in February from 239,000 units in January.

Furthermore, the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, are all scheduled to announce their monetary policies this week.

Top Movers: TerraVest Industries skyrocketed more than 20%. B2Gold Corp climbed nearly 8.5%. K92 Mining gained 6.4%. First Majestic Silver, Storage Vault, Orla Mining, Energy Fuels, Capstone Mining, Ero Copper, Tilray, Hudbay Minerals, New Gold and AtkinsRealis surged 4 to 6%.

Our Stance: Despite the rebound, the index remains below its 21-period Simple Moving Average (SMA), reinforcing the prevailing downtrend and ongoing selling pressure. Momentum indicators offer a cautious outlook, with the Relative Strength Index (RSI) at 47.80, suggesting the potential for a short-term rebound but leaving downside risks intact. Key support to watch is 24,300, aligning with a significant horizontal trendline. 

Commodity Update: The U.S. dollar remained near a five-month low against the euro and other major currencies on Tuesday, weighed down by concerns over escalating global trade tensions. Fears that President Trump's tariff policies could spark an economic slowdown have dampened investor sentiment, impacting the dollar. In the commodities market, gold rose 0.50% to $3,021.10, silver gained 0.57% to $34.51, and copper edged down 0.15% to $9,851.10. Brent crude climbed 0.40% to $71.33 after Israeli airstrikes in Gaza, but oil struggled for substantial gains as investors remained cautious ahead of the Federal Reserve's policy meeting.

Technical Update: The S&P/TSX Composite Index posted a strong performance on Monday, gaining 231.71 points (+0.94%) to close at 24,785.11, driven by high trading volumes that signal sustained investor optimism. Leading the rally, the energy sector surged 1.51%, reflecting growing confidence in energy stocks. Despite the rebound, the index remains below its 21-period Simple Moving Average (SMA), reinforcing the prevailing downtrend and ongoing selling pressure. Momentum indicators offer a cautious outlook, with the Relative Strength Index (RSI) at 47.80, suggesting the potential for a short-term rebound but leaving downside risks intact. Key support to watch is 24,300, aligning with a significant horizontal trendline. Holding this level could provide a base for stabilization and recovery, while a breakdown may accelerate declines, with further downside targets at 24,100 and 23,800.