INFOSYS LTD-SP ADR (NYSE:INFY) Reveals Intriguing Technical Aspects. Here's What You Need to Know.

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.

Deciphering the Technical Picture of NYSE:INFY

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, INFY scores 9 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, INFY is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• When comparing the yearly performance of all stocks, we notice that INFY is one of the better performing stocks in the market, outperforming 82% of all stocks. We also observe that the gains produced by INFY over the past year are nicely spread over this period.
• INFY is part of the IT Services industry. There are 87 other stocks in this industry. INFY outperforms 74% of them.
• INFY is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month INFY has a been trading in the 22.07 - 23.42 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of INFY contains the most current technical analsysis.

How do we evaluate the setup for NYSE:INFY?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:INFY this score is currently 9:

Besides having an excellent technical rating, INFY also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 23.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 22.79, 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.

Trading setups like NYSE:INFY

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.