INFOSYS BREAKOUT SWING TRADE - INVERTED HEAD AND SHOULDERS

2 thg 2, 2023

Good day :)

NIFTY IT has given a range breakout with a strong Marubozu open candle.
Most of the IT stocks are performing really good and most of them are giving breakouts.

I have identified one of the most strongest stocks of the IT sector which holds a weightage of more than 7% in Nifty. The stock is INFOSYS.

This stock has been in a channel since May 2022. In the recent support at the base of channel , the stock has created a Inverted Head and Shoulder pattern which signals a bullish trend in the stock.
Stock has broken the neckline with a strong bull candle. We can take a long position on retest of neckline and can expect good targets.

Investors typically enter into a long position when the price rises above the resistance of the neckline and the stock has already proved this by breaking out with a strong bullish candle.
Huge volume spike can be seen at breakout which confirms it as a healthy breakout.

Resistances are identified as Target 1 and Target 2 giving a Risk Reward Ration of 1:1.5 & 1:3 respectively

The probability of targets being hit increases as the stock is in a channel.

Disclosure : I am not SEBI registered.The information provided here is for education purposes only.I will not be responsible for any of your profit/loss with this channel suggestions.Consult your financial advisor before taking any decisions.