CGI (GIB.A-T, Wednesday’s close $159.22) had a breakout from a large trading range in 2022 (dashed lines) and reached $142.31 in June 2023 (A). We identified the breakout on Dec. 14, 2022 ($118.57) and provided targets of $130 and $145. The subsequent rise was quite sharp and brought CGI far above the 40-week Moving Average (40wMA). A horizontal trading range followed mostly between $130 and $142 (dotted lines), which allowed the 40wMA to catch up with the price and eliminate the overbought condition. The recent rise above the top of the trading range signaled a breakout and the resumption of the long-term uptrend (B).
A minor correction toward $147-148 would provide a good entry level. Only a sustained decline below ±$145 would be negative.
Point & Figure measurements provide a target of $170. The large trading range (dotted lines) supports higher targets.
The Globe and Mail
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com