CGI Group has had a series of rallies (A-B, C-D) and corrections (B-C, D-E) since 2014. However, during the past ten months, the stock stayed within a horizontal trading range mostly between $61 and $67 (dashed lines). The recent rise above $68 signalled a breakout and the resumption of the uptrend (F). Behaviour indicators including the rising 40-week moving average (40wMA) and the rising trend-line (solid line) confirm the bullish status. Only a sustained decline below $63 to $64 would be negative. Point & Figure measurements provide targets of $74 and $79. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Monica Rizk
Ron Meisels