This is a quick follow-up on a piece I wrote about Cognizant Technology (CTSH) called “Planning to Accumulate Cognizant Technology Even As It Fights To Hold 2-Year Lows.” Since then, CTSH has rallied to fill its earnings gap from May.
I sold my position after the August earnings gap up thinking I would get another chance to reload at lower prices. CTSH remained below stiff resistance at the 200-day moving average (DMA), and I figured on a fade back to the 50DMA. Instead, CTSH consolidated for a month and broke out again starting on September 7th. This breakout filled the May post-earnings gap a week later. CTSH now looks like it will consolidate again around current levels. The stock is a definite buy on the dips going forward as it continues to build a stronger and stronger base of support for launching into the next bullish phase for CTSH.
Be careful out there!
Full disclosure: no positions