IT services provider CGI Group Inc. (Friday’s close $87.88) has been in a long-term up-trend for several years (dashed line). We reported higher targets on numerous occasions throughout these years. Our most recent report (April 7, 2018 - $73.29) provided higher targets of $79 and $84, which the stock reached and exceeded in July (A).
The stock had a correction toward its rising 40-week moving average (40wMA - B) but then rallied back to its previous high. The recent rise above $87-$88 signalled the resumption of the up-trend toward higher targets (C).
There is good support near ±$83 and only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $99 and $109. Higher targets are visible.
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