TSX recovered swiftly and finally ended the day's session on a firm note.

Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index closed up 124.38 points or 0.49% at 25,328.36, gaining for a third straight session. The index scaled a low of 25,208.56 and a high of 25,441.73 intraday.

Macro Update: On the economic front, data from Statistics Canada said wholesale sales in Canada increased by 1.8% month-over-month in January 2025, rebounding from a 0.2% decline in December, preliminary estimates showed.

Top Movers: Aya Gold & Silver and Fortuna Silver Mines climbed 7% and 6.25%, respectively. Oceanagold, Orla Mining, Iamgold Corp, First Majestic Silver Corp, Hudbay Minerals, Sandstorm Gold and Ngx Minerals gained 4 to 5.3%. MAG silver, New Gold, Capstone Mining Corp, Torex Gold Resources and Kinross Gold Corp also rallied sharply.

Our Stance: Despite this upward movement, the technical outlook for the index remains bearish as it continues to trade below its 21-period Simple Moving Average (SMA), indicating negative momentum. Currently, the index is testing a key support level around 25,100. For the bullish trend to remain intact, it is crucial for the index to hold above this level. A drop below this support could trigger a correction, with the next support levels at 24,800 and 24,600.

Commodity Update: The U.S. dollar strengthened above an 11-week low on Thursday as President Donald Trump's ambiguous remarks about imposing tariffs on Europe and further delays in tariffs on Canada and Mexico created market uncertainty. Trump suggested that 25% tariffs on Mexican and Canadian goods could be enacted by April 2, pushing back the March 4 deadline. In commodity markets, gold dipped 0.12% to $2,926.80, silver fell 0.97% to $32.13, and copper decreased 0.39% to $9,425.50. Meanwhile, Brent crude oil rose 0.30% to $72.72 after Trump reversed Chevron's license to operate in Venezuela, potentially tightening the oil supply.

Technical Update: On Wednesday, the S&P/TSX Composite Index rose by 124.38 points, closing at 25,328.36, marking a 0.49% gain. This increase reflects strong investor confidence, particularly in the technology sector, which climbed 1.24%. Despite this upward movement, the technical outlook for the index remains bearish as it continues to trade below its 21-period Simple Moving Average (SMA), indicating negative momentum. The Relative Strength Index (RSI) is at 48.98, suggesting a stable market but possibly signaling a short-term pullback. Currently, the index is testing a key support level around 25,100. For the bullish trend to remain intact, it is crucial for the index to hold above this level. A drop below this support could trigger a correction, with the next support levels at 24,800 and 24,600. Although the broader sentiment remains positive, traders should remain vigilant, closely monitoring these critical levels for potential signs of volatility and downside risks.