Infosys Long Term Analysis 1. According to my personal analysis method and indicators using RSI & CCI, INFOSYS has already achieved a blow-off top and has already started its downtrend on the weekly and monthly charts. Apart from that, what makes me sure that INFOSYS will dump towards the 0.618 area (aka 1050.95 RS) in the upcoming months is the current global and economic conditions.
(If you want to see how my analysis method works then observe the RSI & CCI's white line. Every time the RSI & CCI's violet line crosses their respective white lines from top towards the bottom you will see a measure downtrend on the graph in correspond to that period.)
The major problem includes inflation and hyperinflation all over the world and Central Banks getting ready to increase interest rates.
Increasing interest rates= Same as taking out the stimulus money that Banks have used during Covid Crash to prevent the stock market from crashing.
2. Apart from my personal analysis method, using the Elliots wave we can pretty much figure out that we are currently in Wave 2 which is known for its 50-60% downfall that exactly coincides with the 0.618 (aka 1050.95 RS) Fibonacci retracement level.
Note: Do remember that the price may not touch the 0.618 level in some cases.
If the Central Bank of India, RBI raises interest rates aggressively then expect INFOSYS's price to touch the 0.618 level, and in the worst case 0.786 level and 1 level.
If RBI takes it slow, then depending upon Global and National economic conditions (of that time) the price may show a bounce from the 0.5 (1221.70) level.
For now, investors should know what to do and what to not and how to save their funds in times of such global and economic crisis.
PS: None of this is financial advice and the analysis above is purely for educational purposes.
