Wipro forms three inside down pattern
The stock of Wipro Limited has formed a spinning bottom candlestick pattern as on March 19, 2020 and thereafter, witnessed a pullback rally up to 38.2 per cent Fibonacci retracement level of its recent downward move (Rs 258.35-Rs 159.40). However, currently, the stock has formed three inside down candlestick pattern on the daily time frame. The three inside down pattern represents a confirmation of the bearish harami pattern, which indicates that the forecast is successful.
Along with this bearish formation, the stock has also managed to close below its short term moving averages, i.e. 8-day EMA, 13-day EMA and 20-day EMA. Among the momentum indicators, the 14-period daily RSI cooled off after touching the zone of 48-50 and at present, its reading is 39.03. The daily stochastic has also given a bearish crossover, which indicates a further downside momentum.
Going ahead, Tuesday’s high of Rs 199.80 is critical for the bulls to continue the rally. If it is unable to surpass this level then, there are chances of entering into a corrective to sideways phase where Rs 174.80 is likely to act as a support level. Any close below Rs 174.80, will lead to a fall up to the level of Rs 159.40.
On Friday, the stock of Wipro closed at Rs 180.60 per share, down by 4.82 per cent. The stock opened at Rs 190.05 per share and hit an intraday high of Rs 190.05 and a low of Rs 177.80 per share on BSE.