Stock Technical Analysis: CGI Inc. (GIB.A)
Trade Setup:
- Stock recently faced rejection from its all-time resistance.
- It’s now heading towards its support level, presenting a potential opportunity for a long swing trade.
- The Relative Strength Index (RSI) is below 30, indicating oversold conditions.
- Additionally, the 200-day Simple Moving Average (SMA) aligns with the support line, adding further significance to the potential entry point.
Entry: Entering the trade near $142.96 when the price is taking support at the 200 SMA (Simple Moving Average). This suggests a potential bounce from a key technical level.
Stop Loss: Setting a stop-loss at $136.96. This is the price at which you would exit the trade to limit potential losses if the trade moves against you. It’s important to have a predetermined exit point to protect your capital.
Target: You have two targets:
First target is set at $160. This is based on the expectation of the stock testing its all-time resistance level. It’s important to take profits at this level as it represents a significant price point.
If the stock breaks its all-time high and closes above it on the daily chart, you should adjust your stop-loss strategy. Trail your stop loss with the 20 EMA (Exponential Moving Average) to capture further gains while protecting your profits.
Please note this is only an opinion and not financial advice.
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