Constellation Software (CSU.TO) has been a remarkable ride for investors. Since the IPO 8 years ago the stock is up 1800%.
However, recently, the stock went into a sideways consolidation. Looking on the chart above; 2010, 2011, 2012 were all excellent entries after the stock broke above a sideways consolidation. Lets zoom in on the current setup.
We can see the stock has plenty of momentum upwards. The four green arrows show big weekly pushes in the stock. The histogram for the MACD is starting to improve this week. The volume is drying up in the flat handle area which I would interpret to mean we are running out of sellers. The SCTR ranking has jumped back above the 70% line. The MACD looks to be resetting the momentum as it gets ready for its next push. The price is set up in what is commonly referred as a cup-with-handle pattern seen in great stocks historically.
This could be a volatile time as the stock tries to break out. Should it fail to hold above this weeks low, that would be a big problem technically for the stock. If the low holds, I would expect a big upside move if the overall market continues to march higher. It looks to me like the stars are lining up for constellation Software to go higher!
SPECIAL ANNOUNCEMENT:
I will be doing my first live webinar as The Canadian Technician tomorrow. Thursday, September 26th at 4:30 EDT and 1:30 PDT or 30 minutes after the market closes. If you would like to listen in, I strongly recommend you read the following page first so all the technology works for you as I won't be able to provide technical support before / during the presentation. Getting Started With Greg's Gotomeeting Webinars. I plan on working through the expansive list of major multi year trend lines that have fallen recently. There are more trend lines falling than raindrops in Seattle ! I'll conclude with what that means to me in my interpretation. It will be a one hour Webinar.
- So follow the instructions on the Getting Started With Greg's Gotomeeting Webinars.
- Make sure you have tested your audio and that it works.
- A few minutes (3 to 5 minutes) before our meeting time on Thursday, log in.
- You will need to enter a meeting ID number.
The meeting address will be: 121-591-619
- If you followed the "Getting Started" instructions, you'll be able to post a question during the meeting. I'll probably limit the questions to 2 or 3 as the presentation will be long at almost an hour.
- As this is my first webinar, it might not be recorded until we get all the technicalities worked out. So its a live only webinar for now.
Good trading,
Greg Schnell, CMT
