AfnanTAjuddin

Technical Analysis: Wipro's Potential Breakout

Long
NSE:WIPRO   WIPRO LTD
Hello traders! Today, we'll dive into an exciting technical analysis of Wipro, a prominent IT company and a part of the Nifty 50. I'll walk you through some essential concepts and terms while dissecting the current market situation. Please note that this analysis is for educational purposes only, and I am not a SEBI registered analyst.

πŸ“Š Key Details πŸ“ˆ

Wipro has been in a downtrend since October 2021 until March 2023. However, things seem to be changing now. Starting from December 2022, Wipro has formed an inverted head and shoulders pattern, which indicates a potential trend reversal. Today, we see the head and shoulders pattern breaking, but it's too early to confirm the breakout. We need to wait for the market to close, or we can initiate a trade five minutes before the closing bell if the breakout sustains.

There is a critical resistance zone for Wipro, ranging from 417 to 413. If Wipro manages to sustain above this level today, it might present a good opportunity for a buy trade. Additionally, analysing the volume chart, we can observe a significant surge in volume over the last three days, adding more weight to the breakout trade setup.

πŸ’‘ Educational Insights πŸ’‘

Before we proceed further, let's briefly explain some important technical terms:

1. Head and Shoulders Pattern: This pattern indicates a trend reversal and consists of three peaks, with the middle peak (the head) being the highest, flanked by two smaller peaks (the shoulders). A breakout above the pattern's neckline signifies a potential upward move.

2. Resistance Zone: It's a price range where a significant number of sellers are present, preventing the price from rising further.

3. Volume Analysis: Volume measures the number of shares or contracts traded during a given period. A surge in volume can validate the strength of a price move.

πŸ’¬ Like, Comment, and Follow! πŸ’¬

If you find this analysis helpful, don't forget to show your support by liking and commenting! I appreciate your observations and feedback, as it keeps me motivated to write consistently.

πŸ‘‰ Follow me on TradingView for more articles and trade setups: in.tradingview.com/u/AfnanTAjuddin/ πŸ‘ˆ

πŸš€ Stay Inspired and Keep Trading! πŸš€

Remember, trading can be both thrilling and challenging. Always approach it with discipline and a learning mindset. With the right knowledge and analysis, you can unlock opportunities in the markets!

Keep exploring and happy trading! πŸ“ŠπŸ“ˆπŸ€
Comment:
I have mentioned clearly : "but it's too early to confirm the breakout. We need to wait for the market to close, or we can initiate a trade five minutes before the closing bell if the breakout sustains.

There is a critical resistance zone for Wipro, ranging from 417 to 413. If Wipro manages to sustain above this level today, it might present a good opportunity for a buy trade."

So, Trade not activated because price not sustained above 417 level yesterday