INFY closes within previous day's range
Infosys Limited American Depositary Shares (INFY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
INFY finished the month 33.02% higher at 12.85 after losing $0.10 (-0.77%) today, strongly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $0.22 (1.7%), that's slightly below the last trading month's daily average range of $0.25. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for INFY. Prices continued to consolidate within a tight trading range between 12.55 and 12.99 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 12.99 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 12.98. The last time this happened on July 24th, INFY actually gained 2.76% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 12.99 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Infosys. Out of 487 times, INFY closed higher 53.39% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.55% with an average market move of 1.10%.