$INFA*For share traders only. Not meant for options.
Green: Entry Point
Blue: Start of Week
Red: End of Week
Thumbs Up: Trade Available for Week
$ Amount (Numbers Above): Price Targets
*I don’t believe in sharing strategies or outlooks due to the idea that it could cause someone confusion within. It’s important in trading to find your eyes and do things that match your scope of understanding. Over time, if the work is put in, you will create a strategy that in most cases aren’t full proof, but something you can lean on creating an edge for yourself. This strategy is based on a mix of volume analysis, Elliot Waves, retracements, and candlestick anomalies.
INFA trade ideas
INFA (Long) - AI play with a robust baseFundamentals
The market right now is full of companies acting like prime AI bets . From what I can tell, NYSE:INFA is one of the more legit ones, building an AI-powered platform for multi-cloud system
The valuation is slightly stretched but that is to be expected in a hot sub-sector. Hence, we need to gauge it against the industry, where INFA is exactly at the average
Sales growth has been reliable and strong over the past decade, and the firm is nearing profitability
Debt is stable at 1:1 ratio with equity. One fun fact is that CEO's compensation is $32m a year; the average in the industry is $8m, That's a major red flag, but we do not really care in a 6-month window; just something to be aware of
On this one though, we are here for the technicals
Technicals
The technicals on this chart are gold
Starting, as always, with a robust base which has accumulated over a longer time period
The break out of the base came on news of blockbuster earnings , which is the kind of support a name like this needs
Because of the positive news, the move was accompanied by higher-than-average volume as depicted on the graph
Indicators also further support the break : (i) volume, represented by Chaikin Money Flow, has been showing divergences long before the move actually happened (orange circles) and (ii) a factor I consider crucial, a high relative strength against the market; the indicator is clearly breaking out and pointing higher
Momentum is strong (stochastics) and supported by the rally in the broader indexes
The stock clearly broke through all the moving averages ; another important factor when looking for an uptrend with legs
Trade
On the daily, the trade is slightly stretched. However, it still provides a good entry considering the proximity to the breakout line
Ideally, the stock would oscillate around this line for a couple of days and let the moving averages catch up with the price
It is up to you whether you wait or enter here. I choose to wait just because I feel the price action in the whole market needs to consolidate for a few days
Caveat? The stock does not hold the line and breaks lower. However, considering the magnitude of the move, it is not unrealistic that this happens. In that case, I would wait for the price to break again and re-enter
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Critical Resistance Reached, Trend Change or Short Play? INFAHi guys! This is a Technical Analysis on this relatively new company Informatica, Inc. (INFA). But the focus is not the company but rather on finding these specific trends in price action.
This analysis is done on the 1 Week timeframe.
Main takeaway is that its powerful to be able to identify when Price action reaches a Major Resistance or Support level. It can make for taking short or long positions.
Notice how INFA is in this Downward Channel.
We've had some touch points on the Support trendline in black.
With every touch, we've had Uptrends.
With our most recent touch of Support, we've had an Uptrend that brought us to our Resistance trendline in RED.
Note, this recent uptrend has created a Higher high from a previous lower higher. Good sign for trend change attempt.
We have also printed our 1st Golden Cross between the 21 EMA(Purple) and the 50 SMA (Green).
This is a powerful bullish sign, even more so that it has happened on the 1 Week. This can provide necessary momentum to break out.
Our current Price action is in a crucial zone. We are attempting to breakout of this Major Resistance trendline.
If we can break through and CONFIRM, it may indicate a Trend Change.
However, do note that this is our 2nd time directly touching this trendline. Trendline theory states it requires atleast 3 touches for that trendline to break. This being a powerful Resistance area, It is important to also look for signs of Rejection.
One sign currently is the presence of Upper Wicks of candles. This shows sell pressure off this trendline.
A Clear sign of rejection would then make this area a solid spot to take short positions.
Target being the Support line below us which coincides with the previous Lower Higher or the 21 EMA.
Now going back to if we can breakout ABOVE the Major Resistance Red Line and Confirm. Our target would be the Horizontal Resistance line Above us.
In my opinion if we can break through the horizontal resistance line. Reaching all time highs becomes very likely. As we dont have much Market Structure above.
One sign to assess if we breakout is VOLUME to increase or spike. That would show signs of increased liquidity which is what we need when trying to trend change. If we breakout with Low Volume, it may lead to a FAKEOUT.
If we reach ABOVE Major Resistance and CONFIRM, this would make for an area for Long positions especially Longer Term Positions/ Investment. This would also signify a Trend Change.
Look to the 1 Day for further signs of whats to come. I will be sure to update as well.
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Stay tuned for more updates on INFA in the near future.
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DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.