CGI Near the 50 Day

Published on Tuesday, 24 January 2012 06:16 Written by Christopher Lynn

New York, January 24th (TradersHuddle.com) - Shares of CGI Group Inc. (NYSE:GIB) closed the trading day at $18.92 close to its 50 day moving average currently set at $18.61. CGI's price action is just above this important support level translating into a trading opportunity.

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.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $17.40 and calculated resistance at $19.46. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on CGI will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.