CGI Inc. - (GIB.A.TO) - March 27 2023 (Daily Stock Report)

by SIACharts.com

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.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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