CGI that has recently signed an agreement to manage part of National Bank of Canada security infrastructure shows signs of a recovery.

High quality “Surperformance” ratings are observed for this equity for trading strategies. Its net income is intended to increase by 78% for 2014 (due to the acquisition of logica). Although the net margin has sharply risen in 2013, an even higher fluctuation is anticipated for 2014 (near 70%). Moreover, the company’s debt should decrease on this year. Further, its low valuation in terms of P/E ratio (13.8 estimated for 2014) keeps CGI attractive for investors.

On a technical viewpoint, the stock comes from a huge bullish candlestick (+4.2%) on yesterday session and should hold its uptrend in order to break the short term resistance at CAD 37.8 and later attain the resistance at CAD 40.6.

Active investors could take a long position at current prices. Then, they could seek for an objective near the CAD 40.6. Otherwise, the stop loss is placed below the CAD 36 (20-week moving average).