Constellation Software: Break-Out; Top Canadian Company
Constellation Software is the most expensive Canadian stock one can buy and its capital growth has been absolutely incredible. While stock numerical value in itself means nothing, overtime this stock has done beautiful things. My favourite sector in the tech space is software for its capital appreciation, stability and resilience when a market correction happens, as well as, the ability to bounce-back when one does happen.
The question now is, now that CSU has broken-out, where will it go? While its impossible to tell obviously, we can look back in history. In this study we can see 4 or 5 times it rose about 16-18% just prior to the dip before the break-out. In this case I can see CSU reaching well over $1450.00.
Technically speaking, this stock is beginning to squeeze at greater strength everyday and it could go on a bit of a parabolic run. The best sign of an impending short squeeze is when a certain stock or equity rises consistently even as the market and the entire sector falls for a certain period of time.
Overtime this is certainly a company you want to be in on the dips for software exposure even if one's means can only fathom a handful of shares given the price tag.
Another important factor most people overlook when investing is that, the lower the outstanding shares (generally speaking) the better. Higher outstanding shares increases dilution amongst shareholders, decreases EPS and has an increased potential for volatility and short interest when the "big whales" decide to sell. For this reason, during market corrections, the stocks with absurd numbers of outstanding shares in the billions usually tumble the most.
- zSplit
The question now is, now that CSU has broken-out, where will it go? While its impossible to tell obviously, we can look back in history. In this study we can see 4 or 5 times it rose about 16-18% just prior to the dip before the break-out. In this case I can see CSU reaching well over $1450.00.
Technically speaking, this stock is beginning to squeeze at greater strength everyday and it could go on a bit of a parabolic run. The best sign of an impending short squeeze is when a certain stock or equity rises consistently even as the market and the entire sector falls for a certain period of time.
Overtime this is certainly a company you want to be in on the dips for software exposure even if one's means can only fathom a handful of shares given the price tag.
Another important factor most people overlook when investing is that, the lower the outstanding shares (generally speaking) the better. Higher outstanding shares increases dilution amongst shareholders, decreases EPS and has an increased potential for volatility and short interest when the "big whales" decide to sell. For this reason, during market corrections, the stocks with absurd numbers of outstanding shares in the billions usually tumble the most.
- zSplit
Trade closed: target reached:
Stock reached 1460 before a correction. Re-buy level will be 1000.00.
Trade cancelled.
Trade cancelled.