Constellation Software Inc - (CSU.TO) - February 3, 2023
Constellation Software Inc. (CSU.TO) recently moved back into the Green Favored Zone of the S&P/TSX 60 Index 2 days ago ending a one year absence as the shares resided in either the Yellow Neutral or the Red Unfavored Zone since January of last year. Currently, the shares occupy the #12 spot in the S&P/TSX 60 Index, up 8 spots in the last week and 26 spots in the last quarter.
In looking at the attached Candlestick chart, we see that the shares found support twice in the $1800.00 area back in June and October of last year. The shares subsequently broke above its 200 Day Moving Average in November at the $2000 area and is now on the verge of breaking out to new all time highs set last year at the $2400.00 area back in January of 2022.
It is currently bumping up to resistance at the $2400 area. If we see a follow through breakout to this upcoming resistance level then the next area of resistance can be found at around $2600 based on a measured move. Support can be found at approximately $2175.00 area and, below that, the $1800.00 level.
In the attached Point and Figure Chart at a 2% Scale, we see the share’s strong rally starting in December of last year with a current column of 12 X’s without a pullback. Now we see the shares up against a resistance area of $2389.80 which was the previous all-time high achieved back last January. If the shares manage to break out above this near term resistance , the next area of resistance is at $2638.53 and, above that, the $2913.15 level. Support for the shares is at the 3 box reversal at $2164.51 and, below that, the $2000 round number. With an SMAX of 9, the shares are exhibiting near term strength against the asset classes.
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