Published on: January 15, 2024
Wipro, the Indian IT giant, has been under the microscope lately. The stock has lagged behind its peers, leaving investors wondering if they should stick with the company or cut their losses.
The Wipro share price has rallied over 10% in the opening today on NSE after the company announced its quarterly numbers.
However, recent technical analysis presents a glimmer of hope.
Wipro Weekly Chart
Source: TradePoint
The weekly chart of Wipro reveals a fascinating pattern – a clear Wyckoff accumulation phase. This framework, developed by legendary trader Richard Wyckoff, identifies various stages in a stock’s price movement. In Wipro’s case, the accumulation phase suggests a potential shift from a bearish trend to a bullish one.
This phase is divided into four stages: A, B, C, and D. Wipro sits in Phase D, which is considered a crucial turning point. It indicates that smart money, recognising the underlying value, is starting to accumulate shares. This could be the spark that ignites a sustained uptrend.
While Wipro share has been a slow mover, the Wyckoff structure highlights a potential bottoming phase supported by rising volume. The surge in volume during the spring months signalled the potential for a turnaround. Since then, consistently higher volumes, culminating in a further increase during Phase D, point towards institutional interest entering the stock.
Despite this encouraging technical picture, it’s essential to maintain cautious optimism. The accumulation phase doesn’t guarantee an immediate upsurge. Patience and close monitoring of price movements and volume are crucial.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult with your financial advisor before making any investment decisions.
