Wipro move upto 7%
Buy Range:396-398
Stoploss:383
Target:425
Move: upto 6.5%-7%
Duration: In 20-25 days
This large-cap IT stock has been consolidating for a couple of weeks within the technical price pattern of a symmetrical triangle. The price is seen attempting to break out from this pattern. This can trigger a potential up-move in the stock by close to 6.7%. This price set-up makes it attractive to buy at the current level with a favourable risk-reward ratio.After forming a bottom at Rs 378-Rs 380 levels in October, the stock price of Wipro Ltd (WIPRO) formed a higher bottom, which hinted at initial signs of reversal in the trend. While forming a higher bottom, the stock price moved above the 50-day MA, indicating bullishness in the near term. The recent attempt to break out from the pattern is accompanied by an increase in volumes. They have stayed higher than their 20-day average. This raises the possibility of a sustainable up-move taking place over the coming days. The Relative Strength Index (RSI), which is the lead indicator, had made a break out from the downward-sloping trend line resistance, which can have potentially bullish implications. The MACD has crossed above the signal line as well as moved up in the positive territory. This indicates that the upside momentum is increasing. The Parabolic SAR is an indicator that is used to identify points of potential stops and reversal of trends. This signal at present remains in a continuing buy mode, indicating the current trend to be on the upside.
Thus, an attempt to break out from the current price pattern, the RSI breaking out from the downward-sloping trend line resistance and the PSAR staying in a continuing buy mode lays the ground for a potential up-move by close to 6.7%. Any move below Rs 383 can be considered to move out of the stock.
Stoploss:383
Target:425
Move: upto 6.5%-7%
Duration: In 20-25 days
This large-cap IT stock has been consolidating for a couple of weeks within the technical price pattern of a symmetrical triangle. The price is seen attempting to break out from this pattern. This can trigger a potential up-move in the stock by close to 6.7%. This price set-up makes it attractive to buy at the current level with a favourable risk-reward ratio.After forming a bottom at Rs 378-Rs 380 levels in October, the stock price of Wipro Ltd (WIPRO) formed a higher bottom, which hinted at initial signs of reversal in the trend. While forming a higher bottom, the stock price moved above the 50-day MA, indicating bullishness in the near term. The recent attempt to break out from the pattern is accompanied by an increase in volumes. They have stayed higher than their 20-day average. This raises the possibility of a sustainable up-move taking place over the coming days. The Relative Strength Index (RSI), which is the lead indicator, had made a break out from the downward-sloping trend line resistance, which can have potentially bullish implications. The MACD has crossed above the signal line as well as moved up in the positive territory. This indicates that the upside momentum is increasing. The Parabolic SAR is an indicator that is used to identify points of potential stops and reversal of trends. This signal at present remains in a continuing buy mode, indicating the current trend to be on the upside.
Thus, an attempt to break out from the current price pattern, the RSI breaking out from the downward-sloping trend line resistance and the PSAR staying in a continuing buy mode lays the ground for a potential up-move by close to 6.7%. Any move below Rs 383 can be considered to move out of the stock.
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