Infosys gives symmetrical triangle breakout

The stock of Infosys Limited has given a symmetrical triangle breakout on the daily time frame. This breakout was confirmed by the above 50-day average volume. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.

With this triangle breakout, the stock after a span of almost 34 trading sessions has managed to close above its crucial medium-term moving average, i.e. 50-day EMA. The 14-period RSI on the daily chart is in a rising trajectory and the fast stochastic line is trading above its slow stochastic line, which suggests a bullish bias. The daily MACD stays bullish as it is trading above its zero line and signal line. Moreover, the other volume-based indicators, such as OBV and money flow index, are also very strong.

Going ahead, the zone of Rs 696-Rs 700 is likely to act as an immediate hurdle for the stock as it is a confluence of 61.8 per cent Fibonacci retracement level of its prior downward move (Rs 811.60-Rs 509.25) and 100-day EMA level. A follow-through move above this level would lead to an extension of the pull-back towards Rs 750, followed by Rs 775. While on the downside, the 20-day exponential moving average is likely to act as a short-term support, which is currently placed at Rs 639.60 level.

On Thursday, the stock of Infosys Limited closed at Rs 679.30 per share, surged by 5.83 per cent. The stock opened at Rs 647.05 per share and hit an intraday high of Rs 683.65 and a low of Rs 638.10 per share on NSE.