Descartes Systems Group Inc. was in an up-trend above a rising trend-line for about one year (solid line). Subsequently, the stock settled in a trading range mostly between $13.50 and $16.50 for about another year (dashed lines). The recent rise to $17.95 indicates renewed investor interest and the resumption of the long-term up-trend (A).
Behaviour indicators including the 40-week moving average (40wMA) and the rising trend-line (solid line) confirm the bullish status. A better entry may occur near $16-$16.50, but only a decline below $15.50 would be negative. Point & Figure measurements provide targets of $19 and $22.
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.
