Two years of relative weakness for IT consulting and service provider CGI Inc. (GIB.A.TO) came to an end about a year ago. Starting last April, GIB.A spent the rest of 2022 slowly clawing its way back up the relative strength rankings in the SIA S&P/TSX 60 Index Report, a process which has accelerated since the start of this year.
CGI Inc. recently returned to the Green Favored Zone for the first time since January of 2020, and finished in 10th position on Friday, up 9 spots in the last month.
Since bottoming out in June of 2022, CGI Group (GIB.A.TO) has been under renewed accumulation, snapping out of a downtrend and increasingly climbing in a step pattern of rallies followed by periods of consolidation at higher levels, a sign of continuing accumulation that recently carried the shares to new all-time highs.
Based on measured moves from previous trading ranges, potential upside resistance appears in the $138.00-$140.00 area, then closer to the $150.00 round number. Initial support appears at the 50-day moving average near $121.50.
This 2% chart for CGI Group (GIB.A.TO) highlights that the shares have been consistently trending upward for over a decade. In 2019-2020, the shares staged a big spike and selloff which took the shares the remainder of 2020 plus all of 2021 and 2022 to recover from.
In 2023, this consolidation phase appears to be over, and the shares have launched into a new upleg. GIB.A.TO has broken out to new all-time highs, established a new High Pole, and completed several bullish Double Top and Spread Double Top breakouts.
Vertical and horizontal counts suggest potential resistance may appear near $140.60 or $146.25, followed by the $150.00 round number. Initial support appears near $117.65 based on a 3-box reversal.
With its perfect SMAX score of 10, GIB.A.TO is exhibiting strength across the asset classes.
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