INFY climbs to highest close ever
Infosys Limited American Depositary Shares (INFY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, INFY finished Wednesday at 13.56 gaining $0.22 (1.65%) on high volume, significantly outperforming the S&P 500 (-0.46%). Today's close at 13.56 marks the highest recorded closing price ever. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (INFY as at Sep 16, 2020):
Wednesday's trading range has been $0.20 (1.48%), that's slightly below the last trading month's daily average range of $0.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for INFY.
One bearish candlestick pattern matches today's price action, the Shooting Star.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 12.81.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for Infosys. Out of 48 times, INFY closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.25% with an average market move of -0.79%.