Trading CGI

Published on Sunday, 18 December 2011 19:12 Written by Christopher Lynn

New York, December 18th (TradersHuddle.com) - Shares of CGI Group Inc. (NYSE:GIB) closed the trading session at $18.28 near its 50 day moving average currently set at $19.09. CGI's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

CGI Group Inc. (NYSE:GIB) provides information technology and business processs services. Its services include management of information technology and business functions, systems integration, consulting, and business solutions. CGI is based in Montreal, Quebec and operates in the financial services, telecommunications, manufacturing, retail, government, healthcare and public utilities sectors.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $17.62 and calculated resistance at $19.28. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by CGI shares.

Traders should evaluate their trade if they want to establish a position on CGI given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.