Following our April 12, 2008 report, CGI Group Inc. completed a base formation (dashed lines) and started a new major up-leg to a high of $24.30 (A). Later, it pulled back to $17 (B) and then stayed in a trading range between $18 and $21 (dotted lines). Recent price action suggests that CGI is on the verge of a breakout from this range (C); a sustained rise above $21.50-$22 would confirm this. Only a decline below $19.50-$20 would be negative.
A sustained rise above $21.50 to $22 would signal Point & Figure targets of $24 and $29.
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. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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