INFY Analysis: Bearish Indications


INFY Analysis:

There are few observations on Infy daily chart which make it bearish:

  1. It met with resistance near 1150 level. In mid July, it got sold off around same level near 1150.
  2. The candlestick pattern for past 2 days make a classic bearish engulfing pattern. Only a close above 1145 will cancel this pattern.
  3. Seems to have support close to 1030~50 levels
  4. Slow stochastic has given a sell signal.
  5. MACD and RSI pointing to bearish indication.
  6. However, it should be noted that any short trade in Infy requires extreme caution and very tight stop loss.
  7. Even with the bearish candlestick pattern the trend is still “Up” so the short position could be very risky.
  8. Also, the option chain indicates 1060~1140 range for Infy in the coming days. This means buying OTM put options may not be profitable trading strategy.
  9. Even if the analysis is correct, we could see 1150 levels once again before further fall in price.

INFY Daily Chart (28-Sep-2015)

INFY Bearish Engulfing
Disclaimer: Even though I am sharing my analysis on this blog, I am not recommending others to trade or invest based on my work. Please do your own research before making any trade or investment decisions. I do not take any responsibility for your profits & losses.


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