Constellation Software CSU-T rallied from $1,078.03 in March 2020 to $2,385.80 in December 2021 (A-B) and then pulled back to support near $1,800.00, slightly less than the one-half correction level (C). Subsequently, the stock settled in a large horizontal trading range mostly between $1,800.00 and $2,200.00 (dashed lines). Constellation Software rallied above this range recently and exceeded the 2021 high to signal a breakout and the start of a new uptrend (D).
Behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trendline (solid line) confirm the bullish status. There is good support near $2,350-2,400. Only a sustained decline below ±$2,250.00 would be negative.
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Point & Figure measurements provide targets of $2,900 and $3,200. Higher targets are visible.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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