INFY -Cup and Handle BO wkly

31 ago

INFY-Cup and Handle BO wkly

Name - INFY
Pattern - Cup and Handle
Timeframe - Wkly
Status - Breakout with good volume
Cmp - 1943
Target - 2279
SL - 1731

Fundamentals:

Here are some key financial ratios for Infosys Limited:

Price-to-Earnings (PE) Ratio: 29.871
Price-to-Sales (P/S) Ratio: 5.032
Debt-to-Equity Ratio: 0.101
Return on Equity (ROE): 33.56%1
Net Profit Margin: 11.6%3
Enterprise Value to EBITDA: 19.912
These ratios indicate Infosys’s valuation, profitability, and financial health. The company has a relatively high PE ratio, suggesting it is valued at a premium compared to its earnings. The low debt-to-equity ratio indicates a conservative approach to leverage.

Pattern: Cup and Handle
The Cup and Handle pattern is a bullish continuation pattern often used in technical analysis. Here’s a breakdown of its key features:

Structure
Cup: The pattern starts with a rounded bottom, resembling a “U” shape. This indicates a period of consolidation where the price gradually declines and then rises back to the original level.
Handle: After the cup is formed, a smaller consolidation or slight downward drift occurs, forming the handle. This part typically has lower trading volume.
Interpretation
Bullish Signal: The pattern is considered bullish, suggesting that the price is likely to continue rising after the handle is formed and a breakout occurs above the resistance level at the top of the cup12.
Volume: Ideally, volume should decrease during the formation of the cup and handle, then increase during the breakout1.
Trading Strategy
Entry Point: Traders often enter a position when the price breaks above the resistance level formed by the top of the cup.
Stop-Loss: A stop-loss order is typically placed below the lowest point of the handle or the cup to manage risk2