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Canada Stocks Close Higher on Strong Momentum; Most Sectors Advanced; Led By Telecom, Banks
8/29/2013 4:13:00 PM
By: MT Newswires
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 ( VZ ) 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.