Wipro Gains 0.72% Amid Technical Consolidation Below Key Resistance

Wipro (WIT) gained 0.72% in the most recent session, closing at $2.78 with a trading range between $2.77 and $2.79. This muted price action occurs within a broader technical context.
Candlestick Theory
Recent candlestick patterns show consolidation near the $2.75-$2.85 range. The 2025-08-11 hammer candle (low: $2.62, close: $2.65) established intermediate support, confirmed by multiple tests in early September. Resistance is evident at $2.85, where prices reversed on 2025-09-10 and 2025-08-25. The current indecisive candles near $2.78 suggest equilibrium between buyers and sellers, with critical support at $2.74 (September low) and resistance at $2.85.
Moving Average Theory
The 50-day moving average (approximately $2.76) recently crossed below the 100-day MA (~$2.83), while both remain under the declining 200-day MA (~$2.95). This configuration signals a bearish intermediate trend. Price consolidation below all three major MAs indicates persistent selling pressure. A sustained move above the 50-day MA would be necessary to suggest trend improvement.
MACD & KDJ Indicators
MACD (12,26,9) shows a neutral histogram near the zero line, indicating balanced momentum after the early September uptick. However, KDJ (9,3,3) resides in neutral territory (K: 45, D: 50, J: 35), lacking clear directional bias. The absence of oversold readings despite the August decline hints at underlying weakness. No significant bullish divergence is observed.
Bollinger Bands
Bollinger Bands (20-day) are contracting with the 20-day SMA at $2.77, upper band at $2.83, and lower band at $2.71. This compression reflects diminishing volatility, often preceding directional moves. The price hovering near the middle band indicates equilibrium, but a close below $2.71 could trigger accelerated selling.
Volume-Price Relationship
Volume spikes accompanied key movements: the 2025-08-13 1.87% rally occurred on 33% above-average volume, confirming accumulation. Conversely, the 2025-09-15 decline saw elevated volume, validating resistance near $2.80. Recent sessions show declining volume during consolidation, suggesting hesitancy. Sustained bullish momentum would require volume expansion.
Relative Strength Index (RSI)
The 14-day RSI reads 48, recovering from oversold conditions in August but remaining neutral. While moving above 30 alleviates immediate downside risk, the inability to breach 55 during September rallies reveals weak buying momentum. Persistent failure to reach overbought territory (>70) aligns with the broader bearish structure.
Fibonacci Retracement
Applying Fibonacci levels to the March 2025 high ($3.62) and August 2025 low ($2.65) yields key retracements: 23.6% ($2.88), 38.2% ($3.02), and 61.8% ($3.25). The 23.6% level rejected rallies in late August/early September. Current price consolidation below $2.88 reinforces this barrier. A decisive break above $2.88 could expose $3.02 as the next technical objective.
Confluence and Divergence Observations
Confluence of resistance exists at $2.85-$2.88, combining the September swing high, Bollinger Band upper boundary, and Fibonacci 23.6% level. Support confluence occurs at $2.65-$2.70, featuring the August low and Bollinger lower band. Notable divergence appears in the KDJ and MACD neutrality contrasting with the bearish moving average structure. The RSI's inability to reach overbought during rallies and volume contraction near resistance zones suggests upward moves may face headwinds. Probable next directional catalyst would be a resolution of the Bollinger Band compression, likely requiring volume expansion.