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  5. CSU: Hello, Does the brief rally followed by a pullback that these four stocks have just experienced carry any meaningful signal, in your view, is it positive or neutral? [Constellation Software Inc.]
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Q: Hello,

Does the brief rally followed by a pullback that these four stocks have just experienced carry any meaningful signal, in your view, is it positive or neutral?

Thanks
Asked by Charles on March 17, 2026
5i Research Answer:

All are software names, and in a broad sense, we are seeing early signs of money flowing back into software (particularly the IGV ETF).

TRI saw a sharp snapback in late February, which filled a gap from $135 to $150, and its recent pullback is now testing that gap area. If we see support found here, and a new bounce above $155, that could help further support a local bottom.

CSU's recent rally has helped the weekly RSI to breakout of a downtrend since mid-2024, and if its pattern loooks quite similar to TRI.

LMN has broken above its low from November 2025, and is holding above it. If it breaks above $32 this would help signal a higher low is in place, which is positive for reversing downtrends.

TOI has the least clear picture, with a downtrend still very much in place, and we would like to see price break above $120, and then eventually above $123. 

It is still early days, but we think this could be the markings of a bottoming process for software, and they can take time to recover.