Descartes Systems DSG-T traded above a rising trendline (solid line) and above the rising 40-week Moving Average (40wMA) for about one year. We identified the start of a new uptrend on February 9, 2023 ($101.43) with targets of $110 and $120.
The stock reached a high of $109.92 in March 2023 to fulfill our first target (A) and then settled in a corrective descending triangle pattern made up of lower highs and equal lows near $95 (dotted lines). The stock had a breakout above this formation in November 2023 and reached a high of $124 earlier this year to exceed our second target (B).
Descartes had a minor correction recently (C) and now appears ready to resume the uptrend. There is good support near $113-114; only a sustained decline below ±$108 would be negative.
Point & Figure measurements provide a target of $140. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com