{"id":196,"date":"2023-11-23T09:01:05","date_gmt":"2023-11-23T09:01:05","guid":{"rendered":"https:\/\/candlestickschart.com\/?p=196"},"modified":"2023-11-23T09:01:05","modified_gmt":"2023-11-23T09:01:05","slug":"pennant-breakout-pattern-signals-strong-buy-for-infosys","status":"publish","type":"post","link":"https:\/\/candlestickschart.com\/index.php\/2023\/11\/23\/pennant-breakout-pattern-signals-strong-buy-for-infosys\/","title":{"rendered":"Pennant breakout pattern signals strong ‘buy’ for Infosys"},"content":{"rendered":"\n

A bullish trajectory seems to be lying ahead for Infosys as the IT sector undergoes a breakout, according to derivative and technical data.<\/p>\n\n\n\n

The Infosys stock formed a homing pigeon candlestick pattern in the first week of November, signalling a sequence of higher tops and higher bottoms on a daily scale, said Sudeep Shah, head of technical and derivative research at SBI Securities.<\/p>\n\n\n\n

\".\"Technical chart of Infosys showing pennant breakout | Source: SBI Securities<\/p>\n\n\n\n

“The stock reached a high of 1453 on November 16 and then saw a minor pullback, forming a bullish pennant pattern. During the pennant pattern formation, volume activity stayed below the 50-day average. The pennant\u00a0is a short-term trend continuation pattern with conical bodies formed during a consolidation period,” Shah said.<\/p>\n\n\n\n

On Wednesday, the stock broke out of the pennant pattern, indicating further bullish momentum. A significant bullish candle formed on the breakout day, reinforcing the strength of the breakout. The stock is trading above its short and long-term moving averages, both on a rising trajectory.<\/p>\n\n\n\n

Discussing indicators, Shah noted that the 14-period daily RSI surged above the 60-mark for the first time since October 2023. The stochastic oscillator also suggests a bullish momentum as the fast stochastic is trading above its slow stochastic line.<\/p>\n\n\n\n

On the derivatives front, the November future surged 1.28 percent, and the cumulative open interest (OI) of the current, next, and far series increased by nearly 5 percent, indicating a clear long build-up.<\/p>\n\n\n\n

Advice for traders<\/strong><\/p>\n\n\n\n

With all these factors favouring the bulls, Shah advises traders to accumulate the stock in the 1,460-1,450 range with a stop-loss at Rs 1,420. On the upside, the stock is likely to test levels of Rs 1,520, followed by Rs 1,550 in the short term. <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

A bullish trajectory seems to be lying ahead for Infosys as the IT sector undergoes a breakout, according to derivative…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/posts\/196"}],"collection":[{"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/comments?post=196"}],"version-history":[{"count":1,"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/posts\/196\/revisions"}],"predecessor-version":[{"id":197,"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/posts\/196\/revisions\/197"}],"wp:attachment":[{"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/media?parent=196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/categories?post=196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/candlestickschart.com\/index.php\/wp-json\/wp\/v2\/tags?post=196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}