In our previous look at CGI Group Inc. (March 17, 2012 – $21.41), we reported that it was ready to resume the up-trend. The stock rallied and reached a high of $41.47 for a 94-per-cent appreciation at that time (A). Subsequently, it settled into a large triangle formation consisting of lower highs and higher lows (dashed lines).
Recent price action above the apex of the triangle suggests the resumption of the long-term up-trend (B). A sustained rise above $41 would confirm this. Only a decline below $37.50-$38 would be negative. Point & Figure measurements provide targets of $46 and $49. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
