Infosys (INFY) Showing Signs Of Being A Roof Leaker

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Trade-Ideas LLC identified Infosys ( INFY) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Infosys as such a stock due to the following factors:

  • INFY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $62.4 million.
  • INFY has traded 455,327 shares today.
  • INFY is trading at 3.95 times the normal volume for the stock at this time of day.
  • INFY crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on INFY:

Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. The stock currently has a dividend yield of 1.7%. INFY has a PE ratio of 18.7. Currently there are 3 analysts that rate Infosys a buy, no analysts rate it a sell, and 6 rate it a hold.

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