Technical View CPU has undergone two distinct phases since the uptrend began in 2003.
Until early 2005, the trend was impulsive with strong rallies. Since then, the gradient has slowed and the stock has moved up in a more gradual fashion. This is the trend channel that is now relevant.
The stock tested the upper limits of that channel in May before retreating by 26%. This decline brought price back to the lower trendline. Price bounced off the trendline and a Buy signal was registered. The stock has pulled back over the past month, but we are now seeing some renewed strength.
The chart patterns are constructive, momentum remains positive and it will only take marginal strength to push the stock above resistance at the $10 level. Once that is overcome, we expect a move towards $11.
We rate the stock as a BUY; more conservative investors may like to wait until resistance at $10 is overcome.
Company Summary CPU offers two major groups of services to the global securities industry. The first is a global registry business and the second is a range of investor relation services, which range from employee share/option plan management to stakeholder relationship management systems. The company offers its services in 17 countries, including Australia, the UK, the US, Canada, Germany, Hong Kong and South Africa. CPU has expanded rapidly with the Equiserve acquisition in the US.
CPU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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