stock
Descartes Systems DSG-T (Wednesday’s close $101.43) rallied from $38.65 in March, 2020 to $115.29 in November, 2021 (A-B). It reversed the trend in early-2022 and fell below the 40-week Moving Average (40wMA) and stayed below a falling trendline for about nine months (dotted line).
The stock found good support between $75-80 during the second quarter of 2022 (shaded area) then rallied above the falling trendline and the 40wMA in August to signal the end of the downtrend (C).
Descartes then stayed within a triangle pattern for about four months (dashed lines). The recent rise above the top of this formation confirmed a breakout and the start of a new uptrend (D). There is good support near $93-94; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $110 and $120. 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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