Infosys Weekly Chart - Click to enlarge
Infosys has been on an up-move since the beginning of July 2013. This up-move began after a long 9-month period of extreme unsure & volatile price action. In this 4 month old up-move the stock has moved up over 35% & recently moved to a new three week high. In this up-move the stock has seen consistent gaps & has shown strength in the price points gained.
Support levels for the stock are at 3165, 2991 & 2700. The support at 3165 is a minor support that should help the stock hold present levels on a short term basis, 2991 however is a stronger support and more specifically the stop-loss for the stock. Breaching 2991 would not be a healthy sign for the stock & the stock might turn a little unstable & sideways. Below this a major support lies at 2700, this is a very important support to watch for especially for very long term investors as breaching 2700 would signal a bear market in the stock.
Resistance levels for the stock are at 3422 & 3833. Both these price points will also be the next price targets for the stock. The stock has almost fulfilled 3422 & is expected to further move towards 3833 very soon.
Even though the stock had experienced large sideways action the last time it attempted to go bullish including large volatile price action, as indicated in the weekly chart above, but so far the stocks technical outlook seems stable and very bullish. The support at 2991 would be very critical for medium term to long term investors in the stock & on holding this price point we might see the stock move up towards much higher levels.
Infosys 4 months into the new up-move
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