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Shares of Infosys (INFY - Get Report)  jumped on Friday, closing higher by 6.5% and hitting new 52-week highs in the process.

The fact that it's rallying is a surprise in itself, but considering it's hitting new highs raises even more eyebrows. Infosys reported first-quarter earnings results that were only in-line with expectations, while revenue missed analysts' estimates.

This company quietly commands a $45 billion market cap and continues to fly under the radar. Shares are up 20% so far in 2019, as investors continue to gobble up the stock. It's paved a nice trend on the chart as a result, as it hovers over all of its major moving averages.

What's driving the gain on Friday?

For its fiscal year, management increased its revenue growth outlook to 8.5% to 10%, with the midpoint above analysts' expectations of 8.6%. Further, management said the company will increase its current capital return plan from 70% of free cash flow to 85% of free cash flow.

That capital return comes in the form of dividends and buybacks, and is likely giving investors a reason to buy the stock when its earnings report was somewhat disappointing.

Let's look at the charts.

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Trading Infosys Stock

Weekly chart of Infosys stock.
Weekly chart of Infosys stock.

Infosys stock is rallying at a time where tech has the wind at its back. The PowerShares QQQ ETF (QQQ - Get Report)  is at new highs, while names like Amazon (AMZN - Get Report) and Microsoft (MSFT - Get Report) continue to hover near their highs as well.

On the earnings report, Infosys made a powerful move through the 10-week moving average and through the $10.75 level. The latter price point had been serving as resistance for all of 2019. The stock's ability to push through this mark so forcefully should not be overlooked and it will be an important level to watch as potential support,  should INFY stock pullback at some point in the future.

For now, shares are running into potential resistance near $11.50. If Infosys stock can push through this area, it could trigger an even larger breakout to new highs. If it acts as resistance, I want to see how shares do on a pullback toward its prior highs, around $11.10 to $11.20.

Holding above that range increases the odds of higher prices. Below it may summon a test of prior resistance near $10.75.

Until INFY stock tips its hand on whether it will breakout, it remains a buy-on-dips candidate going forward.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.