This is weekly chart of INFOSYS on NSE (INDIA) with CMP @ 663.70. It seems to be an excellent opportunity for a long positional trade based on following observations:
1. A horizonal line on chart acted as stiff resistance during 18th April 2016 to 6th June 2016, has now turned into support as shown on the chart.
2. Support line as mentioned in the preceding point also coincides with;
(a). 61.8% retracement level on Fibo (against rise in price from 9th April 2018 to 1st Oct 2018) and
(b). 38.2% retracement level on Fibo (against rise in price from 11th Sep 2017 to 1st Oct 2018.
3. Trendline drawn on the chart also indicates supports & reversal.
4. RSI has good support near value 40 as observed on the chart but it is witnessed that during recent correction, RSI has not even tested 40 which implies that momentum is still intact.
Above deliberation indicate that reversal has been from confluences of supports and hence its reliability seems to be quite high.
Hence, stop can be exercised at 628 (below swing low) and ride the forthcoming trend.
Happy trading...
1. A horizonal line on chart acted as stiff resistance during 18th April 2016 to 6th June 2016, has now turned into support as shown on the chart.
2. Support line as mentioned in the preceding point also coincides with;
(a). 61.8% retracement level on Fibo (against rise in price from 9th April 2018 to 1st Oct 2018) and
(b). 38.2% retracement level on Fibo (against rise in price from 11th Sep 2017 to 1st Oct 2018.
3. Trendline drawn on the chart also indicates supports & reversal.
4. RSI has good support near value 40 as observed on the chart but it is witnessed that during recent correction, RSI has not even tested 40 which implies that momentum is still intact.
Above deliberation indicate that reversal has been from confluences of supports and hence its reliability seems to be quite high.
Hence, stop can be exercised at 628 (below swing low) and ride the forthcoming trend.
Happy trading...