INFOSYS INFY Elliott Wave technical analysis [Video]

INFOSYS Elliott Wave technical analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Orange Wave 4.

Position: Navy Blue Wave A.

Direction next lower degrees: Orange Wave 5.

Details: Orange wave 3 appears completed; orange wave 4 is currently developing.

Wave cancel invalidation level: 1838.

The INFOSYS daily chart illustrates a counter-trend correction forming within a larger bearish wave structure. With orange wave 3 concluded, the stock has transitioned into orange wave 4, part of the navy blue wave A. This setup suggests a temporary upward movement before the broader downward trend resumes.

Orange wave 4 is a corrective phase typically retracing 23% to 38% of wave 3's decline. Following the completion of wave 3's sharp drop, this wave reflects overlapping price action and weaker momentum—standard features of corrections. This likely represents a short-term pause in a more extended bearish sequence.

Once wave 4 ends, the next expected move is orange wave 5—downward—potentially concluding this bearish phase. The key invalidation level to watch is 1838; any price action above this level would prompt a reassessment of the current wave count and structure.

Traders should keep an eye on wave 4 for classic reversal indicators, such as bearish chart patterns and overbought signals. This correction could provide an opportunity to prepare for wave 5’s downside continuation. Technical confirmation will be critical for proper trade setup.

This phase serves as a natural interruption in the downtrend, allowing traders to review positions ahead of a likely bearish continuation. Monitoring Fibonacci retracement zones will help refine entry timing as the market shifts from wave 4 to wave 5.

INFOSYS Elliott Wave technical analysis

Function: Counter Trend.

Mode: Impulsive.

Structure: Navy Blue Wave A.

Position: Gray Wave 2.

Direction next higher degrees: Navy Blue Wave B.

Details: Gray wave 1 appears completed; navy blue wave A of wave 2 is now unfolding.

The INFOSYS weekly chart reveals a counter-trend correction forming within a broader bearish Elliott Wave setup. Following the end of gray wave 1's decline, the stock has moved into navy blue wave A, which is part of the gray wave 2 correction. This suggests an upward retracement is in motion before the overall downtrend potentially resumes.

Navy blue wave A usually marks the beginning of the ABC corrective pattern. It tends to be less forceful than impulsive moves, showing moderate momentum. The conclusion of wave 1's decline provides the basis for this rebound, which generally retraces 38% to 61% of the earlier move. This pattern likely represents a medium-term pause within a continuing bearish trend.

Next, navy blue wave B is anticipated—a downward move following the current wave A. This phase forms the middle segment of the ABC correction and often shows a renewed decline before wave C completes the overall structure. Traders should watch for signs that wave A is finishing, such as bearish setups and overbought signals.

This correction provides potential opportunities to prepare for wave B’s expected decline. Technical tools will assist in determining when wave A is complete and wave B begins. The weekly chart context stresses the importance of this development in the broader market outlook.

Monitoring price reactions around Fibonacci retracement levels is key to timing entries accurately. The current setup suggests that, following this bounce, the stock may enter another decline. Confirmation from volume and momentum indicators will be important as the correction progresses.

Technical analyst: Malik Awais.

INFOSYS Elliott Wave technical analysis [Video]