TSX Composite Index forecast ahead of RBC, BMO, TD Bank earnings

The TSX Composite Index continued its strong bull run last week and closed at a record high of $33,817. It has jumped by 32% in the last 12 months, beating its American peers like the Nasdaq 100 and S&P 500.

The index jumped sharply on Friday after the Supreme Court ruled against Donald Trump's tariffs for violating the Constitution. Some justices warned that having the president set tariffs would give him too much power.

While Trump has already announced new global tariffs, losing the emergency powers removes one of the tools he has used well in the current administration.

Top TSX Composite Index banks to publish earnings 

The main catalyst for the TSX Composite Index this week will be financial results by some of the biggest Canadian banks, most of which are trading at their all-time highs.

Bank of Nova Scotia, which is valued at over $93 billion, will publish its financial results on February 24. 

Bank of Montreal, commonly known as BMO, will release its numbers on Wednesday. BMO has a market capitalization of over $100 billion. The National Bank of Canada will release its numbers on the same day.

The other top companies, including Royal Bank of Canada (RBC), TD Bank, and CIBC will release their numbers on Thursday this week. RBC is valued at over $233 billion, while TD has a market capitalization of over $166 billion.

These banks have done well in the past few years, mirroring the performance of other global banks, while have jumped in the past few years.

For example, the most recent results showed that RBC generated a net income of over $20.4 billion, up by 25% YoY. Its EPS jumped by 25% to $14.07, while its CET1 ratio remained above 13.5% 

Most importantly, the company continued returning money to investors. It returned about $11.3 billion through dividends and share buybacks.

Similarly, TD Bank reported strong financial results, with its net income jumping to $20 billion, up from $8.4 billion. 

Gold and silver prices 

The TSX Composite Index has done well because of the ongoing gold and silver price surge. Gold ended the week above $5,000, while silver soared to $85. 

A closer look shows that most of the best-performing companies in the TSX Composite Index are in the gold and silver mining industries.

First Majestic silver stock price has soared by 61% this year, making it one of the best-performing companies in the TSX Composite Index.

Other top gainers in the index are companies like Sprott, Oceanagold, New Gold, Allied Gold Corporation, Agnico Eagle Mines, and Endeavor Mining.

These stocks may continue doing well in the coming days as Donald Trump considers attacking Iran, a move that may lead to a broader war in the Middle East. Historically, gold and silver prices rise when there are such major risks.

TSX Index technical analysis 

The daily timeframe chart shows that the TSX Composite Index has done well in the past few years and is now hovering at its all-time high.

It has moved slightly above the important resistance level at $33,692, its highest level this month.

The stock remains above all moving averages, while the Relative Strength Index (RSI) and the MACD have continued soaring.

Therefore, the most likely scenario is where the stock continues rising as bulls target the next key resistance level at $34,000.