Stock of the day: Infineon

In today’s analysis, we have a new player on the team: Infineon Technologies. It’s the first time we mention this instrument on our porta and we’re doing that now because, for the past few days, its price has been going up. We have a positive outlook here, which is supported by the following factors:

First of all, the price is in the long-term uptrend, supported by the red up trendline. Before Christmas, its price tested this line as a support and the test was positive for the buyers. The price bounced but the dynamic trendline was not the only factor that helped. You can see, that IFX also bounced off a horizontal support on 38 EUR (orange), so the tops from September. The combination of those two supports was enough reassurance for the buyers and the price climber higher.

Currently, we are inside of the trend correction pattern – wedge (blue lines). This wedge is promoting a breakout to the upside, so the price closing a day above the upper line of the wedge will be a trigger to another buy signal.