INFY closes higher for the 5th day in a row
Infosys Limited American Depositary Shares (INFY) Technical Analysis Report for Jan 10, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, INFY ended Thursday at 9.88 edging higher $0.01 (0.1%) on high volume, slightly underperforming the S&P 500 (0.45%). Today's close at 9.88 marks the highest recorded closing price since December 14, 2018. Trading up to $0.08 lower after the open, Infosys managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (INFY as at Jan 10, 2019):
Thursday's trading range has been $0.19 (1.94%), that's slightly below the last trading month's daily average range of $0.19. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for INFY. Prices continued to consolidate within a tight trading range between 9.70 and 9.89 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Tweezer Top and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 9.92 (R1). After having been unable to move above 9.89 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 9.89. The last time this happened on December 14, 2018, INFY lost -2.93% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test December's close-by high at 10.05.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Infosys. Out of 400 times, INFY closed higher 51.75% of the time on the next trading day after the market condition occurred.