The TSX closed higher on Thursday up 97.50 points, but was 38
points off session highs. Most sectors were gain ground, with
Telecom and Financials generating tailwinds for the broader index.
Telecom stocks are higher on reports that Verizon (
) is in talks to buy Vodafone Group and market chatter is Verizon
will focus on that and its own market in the U.S. and give up on
the idea of moving in to Canada.
Financials are higher as all of the banks that have reported
this week including CIBC (CM.TO), Royal Bank (RY.TO) and TD (TD.TO)
have reported an earnings beats.
Momentum on the TSX is improving with the MACD (moving average
convergence divergence index) generating a buy signal. This occurs
when the spread (the 12-day moving average minus the 26-day moving
average) crosses above the 9-day moving average of the spread. The
MACD index moved from negative to positive territory confirming the
buy signal. The trajectory of the MACD is upward sloping pointing
to potentially higher prices.
The TSX bounced off of support levels near the 20-day moving
average at 12,621 and is poised to test resistance near the recent
highs at 12,800.
Sirocco Mining Inc. (SIM.TO) was the most active share with no
specific new stock news swaying volume. The stock declined 4.44%
with 5.78 million shares changing hands.
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