The S&P/TSX Composite Index is trading above the 50-period SMA, 2 TSX-listed stocks to consider at the current levels- AII and USA

Company Overview: ​ Almonty Industries Inc. (TSX: AII) is a diversified and experienced global producer of tungsten concentrate, operating exclusively in conflict-free regions. The company currently mines, processes, and ships tungsten concentrate from its Panasqueira Mine in Portugal. Americas Gold and Silver Corporation (TSX: USA), along with its subsidiaries, is engaged in the exploration, development, and production of mineral properties across North America. The company primarily focuses on gold, silver, zinc, lead, and associated by-products. This Report covers the Price Action, Technical Indicators Analysis along with the Stop Loss Levels, Target Prices, and Recommendations on these two stocks.

Canada Market Round-Up

The S&P/TSX Composite Index (TSX: ^TSX) ended the week with a decline of 1.72%, closing at 27,020.43, amid broad-based sectoral weakness. Gains were limited to the utilities sector, while technology, industrials, consumer non-cyclicals, consumer cyclicals, basic materials, energy, financials, real estate, and healthcare all underperformed the broader market. On the macroeconomic front, Statistics Canada reported a 0.1% decline in real GDP for May, signalling a potential soft patch in economic activity. From a technical standpoint, the index continues to hold above its horizontal trendline support and the 50-period Simple Moving Average (SMA), reinforcing the broader bullish structure. Immediate resistance is observed near 27,550, while key support lies around 26,500. The weekly Relative Strength Index (RSI) currently sits at 64.49, indicating sustained bullish momentum and continued buying interest, yet still shy of overbought conditions. On the macro front, the upcoming major economic events that may impact the Canadian market sentiment include CA Employment Change, US ISM Services PMI and US Unemployment Claims.

Global Markets Wrap-Up

U.S. equity markets showed softer momentum for the week ending August 01, 2025, with major indices recording losses across the board. The Nasdaq Composite led the decline, slipping 2.17% to close at 20,650.13. The Russell 2000, a key benchmark for small-cap stocks, also performed negatively, falling 4.17% to finish at 2,166.78. On the economic front, the U.S. Department of Labor reported a modest increase in initial jobless claims. For the week ending July 26, 2025, seasonally adjusted claims rose by 1,000 to 218,000, up from a revised 217,000 the previous week signalling ongoing resilience in the U.S. labor market.                                                                               .

Taking into the US market's performance over the last week, following the major global macros and data front, based on the technical analysis of the S&P/TSX Composite Index, the two TSX listed stocks fit the maximum criteria on the technical framework. The recommendations are based on the generic insights, entry price, target prices, and stop-loss for Almonty Industries Inc. (TSX: AII)  and Americas Gold and Silver Corporation (TSX: USA) for the next 2-4 weeks.

Almonty Industries Inc. (TSX: AII) 

Price Action Analysis (On the Daily Chart)

On the daily chart, AII continues to trade above a key rising trendline support, underscoring sustained buying interest at this level. The stock’s recent upward movement, accompanied by increased trading volume, signals strengthening bullish momentum and growing market participation. If this positive sentiment holds over the next 2 to 4 weeks, AII appears well-positioned to challenge resistance near CAD 5.80. A clear breakout above CAD 6.20 would likely confirm the continuation of the uptrend, potentially paving the way for further gains.

Technical Analysis (On the Daily Chart)

On the daily chart, the 14-period Relative Strength Index (RSI) is hovering near 41.56, indicating solid momentum and a potential shift towards further upside. Weekly trading volumes remain robust, reinforcing the prevailing price trend and highlighting steady market participation. However, the stock is trading below its 21-period Simple Moving Average (SMA), which serves as a dynamic resistance level.

General Recommendation:

As per the above-mentioned price action and technical analysis, Almonty Industries Inc. looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decisions should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. Below is the summary of our recommendation.

Americas Gold and Silver Corporation (TSX: USA)

Price Action Analysis (On the Daily Chart)

On the daily chart, the USA is holding above a key upward sloping trendline support level, signalling the formation of a solid technical base. This support structure highlights the strength of the prevailing trend. The recent upward move, accompanied by rising trading volumes, reinforces the near-term bullish outlook and points to growing investor interest. Over the next 2 to 4 weeks, the stock appears well-positioned to challenge resistance at CAD 1.42. A decisive breakout above this level could mark the start of a fresh upward leg, potentially unlocking further momentum-driven gains within the current trend.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, the 14-period Relative Strength Index (RSI) is at approximately 52.71, indicating positive momentum and suggesting that buyers remain in control of the trend. Weekly trading volumes continue to support the recent upside, highlighting sustained investor interest and reinforcing the strength of the move. Additionally, the stock is trading above its 50-period Simple Moving Average (SMA), which now acts as dynamic support and further underpins the bullish outlook.

General Recommendation:

As per the above-mentioned price action and technical analysis, Americas Gold and Silver Corporation looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decisions should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings.This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. Below is the summary of our recommendation.

Upcoming Major Global Economic Events

Market events occur on a day-to-day basis depending on the frequency of the data and generally include updates on employment, inflation, GDP, consumer sentiments, etc. Noted below are the upcoming week's major global economic events that could impact the S&P/TSX Composite Index and listed stocks' prices.

Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Individuals can consider exiting from the stock if the Target Price or Stop loss mentioned as per the technical analysis has been achieved and subject to the factors discussed above.

Note 2: How to Read the Charts?

The Green color line reflects the 21-period moving average, while the Red color line indicates the 50-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black color line in the chart's lower segment reflects the Relative Strength Index (14-Period), which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status.

The Blue color bars in the chart's lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume. Liquidity in stocks helps in easier and faster execution of the order.

The Orange color lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Risk Reward Ratio: The risk reward ratio is the difference between an entry point to a stop loss and profit level.  This report is based on ~80% Stop Loss of the Target 1 from the entry point.

A trailing stop-loss is a modification of stop-loss in case of favourable movement in the price to protect the gains.  Individuals can Trail the Stop-Loss as per the aforementioned levels if the stock price achieves more than 50% of the Target 1. individuals should consider exiting from the position as per the Trailing Stop-Loss level if the price starts moving downwards after achieving more than 50% of the Target 1.

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 01, 2025. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

CAD: Canadian Dollar

RSI: Relative Strength Index

Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.