Next Candle In Infosys Trend
Infosys Limited (formerly Infosys Technologies Limited) the Indian multinational corporation that provides business consulting, information technology and outsourcing services headquartered in Bangalore, Karnataka has been able to show a bearish trend since June. But now after its quarterly results and expansion strategies buyers have started getting symptoms of a bullish. Yes, Infosys has started making ground for a bullish trend in next few months. For confirming on same we will have a candlestick pattern analysis on its trend formation through intraday, weekly and monthly candlestick formation.
Here, first we will take a view on intraday and analyze the future prospects accordingly. Second will be on weekly and third one will be on monthly candlestick chart. On Intraday we will take session on 5 minutes, 15 minutes, 30 minutes and 1 day candlestick pattern into three equal sessions.
The above candlestick pattern is on 5 minutes session. Here it shows there was a tight tug of war on 26th sept, 2016 between buyers and seller to move the market. If we divide whole day into three part i.e. 1st (26/09/09:20 - 26/09/11:25), 2nd (26/09/11:25 - 26/09/01:30) and 3rd (26/09/01:30 – 26/09/03:30). We can see that 1st and 2nd part had been dominated by buyers but the strong optimistic feeling of sellers had tried its best to pull the market session. We can see candles such as Doji and Spin off in the trend had not let the buyers to bring bullish trend. In third session sellers started getting reward after struggling in first two part previously to bring a bearish trend. But due to tight opposition from buyers’ side again it has shown and confirmed that atleast half of 1st part i.e. 27/09/09:20- 27/09/11:25 will be dominated by buyers again. It means that market will continue with bullish candles. The confirmation can be gained through the trend reversal candles hammer and spin off in last part, which clearly states that sellers are ready to give up and prices are ready to go up.
Here the above Candlestick pattern shows same trend of tight competition between buyers and sellers which was seen same during 5 minute candlestick pattern. We can divide this chart same as we did in previous chart i.e. 1st part (26/09/09:30 – 26/09/12:00), 2nd part (26/09/12:00 – 26/09/02:30) and 3rd part (26/09/02:30 – 26/09/03:30). Everything remains same in the first two part but in 3rd part we can see one hammer and followed by two spin off candle formation consecutively confirm about an uptrend with bullish candles atleast for 2 – 4 15 minute candles in next trend formation.
Here the above candlestick chart shows sessions on 30 minutes. It’s clear in this chart that the stock price will show an uptrend in few session most probably for two sessions because of the hammer exactly in last 30 minute session followed by a Doji and an Inverted Hammer alternatively prior to Hammer. But formation of Marubozu exactly at 26/09/01:30 followed by a Doji gives symptoms and confirms that the down trend will continue atleast till 27/09/12:00 after 27/09/10:10.
1st candlestick pattern is on day and 2nd pattern on week basis here also same pattern can be seen which gives same symptoms as in previous 30 minute candlestick session.
In 1st candlestick chart consecutively there have been 3 bearish candle since last three weeks, which started with Doji. It gives us a clear symbol that the market has started following a bearish trend with fully dominated by sellers and will continue till next coming days but the upper shadow symptom on the mentioned candles also confirms that buyers as observed in past pattern, still have hope to successfully pull the market up.So the next candle body will be small i.e. a close difference between open and close price.
In 2nd part we can see at the last week candle which is an Inverted Hammer after a short uptrend, clearly depicts that there will again be a seller dominance bearish candle this week when it will be formed completely.
The monthly candlestick pattern above has many good news for the buyers as its only four days left and the last candle formation is in on the way to become a Doji, Spinoff or an Inverted Hammer. Whatever may be the candle but the news will definitely going to be dominated by buyers. If we see the monthly trend of Infosys since the starting point of this chart we can see an Uptrend/Bullish trend and the news apart from stock market will definitely going to boost Infosys stock in coming months. Based on my analysis it will be recommended to hold the stock and have a long term benefit.
Infosys can be rated as a slow moving bullish stock which is convinient for long term investors but on intraday basis, it has to be traded by keeping an eye on every candle as it has a bearish trend to be followed further.
Thank You !
- Anand Singh Gaur
- Sunil Kothari