INFOSYS LTD-SP ADR is setting up nicely for a breakout.

Our stock screener has spotted INFOSYS LTD-SP ADR (NYSE:INFY) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:INFY.

What is the technical picture of NYSE:INFY telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall INFY gets a technical rating of 8 out of 10. In the last year, INFY was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• When comparing the yearly performance of all stocks, we notice that INFY is one of the better performing stocks in the market, outperforming 84% of all stocks.
• INFY is one of the better performing stocks in the IT Services industry, it outperforms 82% of 87 stocks in the same industry.
• INFY is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so INFY is lagging the market slightly.
• INFY is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• In the last month INFY has a been trading in a tight range between 22.39 and 23.48.

For an up to date full technical analysis you can check the technical report of INFY

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:INFY has a 9 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, INFY also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 22.54, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for INFY in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:INFY

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.