CGI : Breaking a resistance to reach another one
Entry price | Target | Stop-loss | Potential |
---|
$37.23 |
$0 |
$35.7 |
-100% |
---|
CGI that has recently signed an agreement to manage part of National Bank of Canada security infrastructure shows signs of a recovery.
High quality “Surperformance” ratings are observed for this equity for trading strategies. Its net income is intended to increase by 78% for 2014 (due to the acquisition of logica). Although the net margin has sharply risen in 2013, an even higher fluctuation is anticipated for 2014 (near 70%). Moreover, the company’s debt should decrease on this year. Further, its low valuation in terms of P/E ratio (13.8 estimated for 2014) keeps CGI attractive for investors.
On a technical viewpoint, the stock comes from a huge bullish candlestick (+4.2%) on yesterday session and should hold its uptrend in order to break the short term resistance at CAD 37.8 and later attain the resistance at CAD 40.6.
Active investors could take a long position at current prices. Then, they could seek for an objective near the CAD 40.6. Otherwise, the stop loss is placed below the CAD 36 (20-week moving average).
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.