Infosys in last six month is as ugly as a candlestick chart can get. Too many gaps. Though most were in one direction even then its too much of a jerky ride. A short term trader with bad habits of missing stop losses this is sure death. There was one good up move in October 2011 but even that is too confusing and candles are not in a good shape there too. Price did rise high but this will not be a peaceful trade. Stock hit a clear strong resistance at 2900. Staying true to its jerky nature came down all the way to 2600.
In this kind of stock your month’s profits can be wiped out in one bad day. So if you are not a long term investor who buys and hoards stocks stay away. And in case you have enough capital to facilitate a short trade margin then this is the stock for you. Short it. Wait for a close below 2600 and then it is a blind short trade. But do keep your stop loss in mind. Even though an up move is unlikely to sustain for long make sure you have an exit plan in place. Below 2600 if 2500 is broken too then there is no support for the stock.
This is what happens with stocks that gap too much. There is no base when they go rogue. Below 2500 I can not spot any support before 2200.
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