Monday, May 24, 2010

Analysis of Wipro Limited (WIPRO-BY)

I love this  stock in BSE 30 index . Held  above the  UpTREND line. When  the  market   bounces  upside  this  is a   potential  BUY  after   sufficient technical confirmation.



  CANDLE STICK TREND ANALYSIS
·             The  Stock   had  a  wonderful   RUN Up  and    currently   consolidating  in a     small triangle/  pennant  pattern. I  like the  fact  that  it   is still supported  by the  200 day  EMA.  As  long as prices   are above  it  I  continue to be  buliish  and   give it  some more  time  for  consolidation.
·          The  fact that  prices  are below   20  and  50 day EMA  makes  me   cautious  for taking a LONG position though.
·          The     MACD   histogram  is  also  forming  lower  high lower lows.  But    taking  other factors into  consideration I  can  consider  it  as  a   triangle pattern consolidation and  be  bullish  after   it makes it’s    a   higher positive  MACD peak  
·        POINT  AND    FIGURE  TREND ANALYSIS
·           The  stock is  trading   well above  it’s  BULLISH  uptrend line that it formed  since     march  ‘09
·         Advanced     P &F  theory  suggests    that the  stock  is   on a    Relative strength   BUY  meaning that  the   stock is   going  to outperform   when the    market  is  ready to break  upside   and  have  less  downside when  entire   market  underperforms.
·        Advanced     P &F  theory  suggests  that   the  stock is  almost at  the     end  of   it’s   50 week trading     band   like   extremely  oversold 

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