Infy Daily
Infy weekly
Infosys.......!
Results Impact or Pure TA?
Quite often we hear that many TA's say that a chart alerts us of what is about to happen. And, the rest of the events is just a formality. But is this saying apt for Infy? Let's judge this.
Prior to the declaration of Infosys results today morning, Infy chart warned about the possible blood bath. And that too a few days before. The Indicators, Pattern & Candle Sticks formation on the daily chart and Fibonacci & Gann theory on weekly chart said it all.
On the daily charts, the Resistance line and the Bollinger bands clearly showed the formation of a Double Top, which was further confirmed by the a bearish inverted hammer; the same candle being a bearish harami as well. All three negatives. Even prior to the these formations MACD and RSI were giving negative divergence (see the yellow dotted lines on daily charts.). And today's Gap Down opening (2916-2551 levels) was enough for even further confirmation.
Coming to the weekly charts; a perfect display of Retracements and Gann. Now that's very interesting.
Infy weekly chart has been moving into the Retracement levels of the prior advance from Feb'2009 - Jan'2011. On the current levels, price was on the resistance levels of the Gann Box (see the various purple boxes in weekly charts.) which coincidentally also happened to be around the 23.6% retracement level. As evident from the weekly charts, Infy has been respecting the levels of Gann Box which from a long time have acted as reversal zones.
And all this was much before the announcements of Q4 results today, setting us to make bearish positions and personifying the statement mentioned in the beginning of this post; with a PICTURE PERFECT example.
For now, the bias for Infy remains negative with its resistance levels at 2551, 2916 and 3000. Till these levels are broken the intermediate / long term trends will remain negative.
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