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

INFOSYS LTD-SP ADR (NYSE:INFY) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:INFY.

Analyzing the Technical Aspects

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.

We assign a technical rating of 7 out of 10 to INFY. 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.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, INFY did better than 70% of all other stocks.
• INFY is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so INFY is leading the market.
• INFY is part of the IT Services industry. There are 82 other stocks in this industry, INFY did better than 59% of them.
• In the last month INFY has a been trading in the 21.89 - 23.63 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of INFY for a complete technical analysis.

How do we evaluate the setup for NYSE:INFY?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:INFY currently has a 10 as setup rating:

Besides having an excellent technical rating, INFY also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 22.79. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 22.58, 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.

How can NYSE:INFY be traded?

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.

Of course, there are many ways to trade or not trade NYSE:INFY and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.