Wipro Jumps 3.38% To 3.06 As Technicals Signal Bullish Momentum

Wipro (WIT) posted a strong performance in the latest session, gaining 3.38% to close at $3.06, marking a three-day winning streak with a cumulative 6.25% advance. This upward momentum warrants a multifaceted technical examination to assess sustainability and potential reversals.
Candlestick Theory
Recent price action shows Wipro breaking above the $3.00 psychological barrier with a sequence of higher highs and higher lows. The latest candle closed near its high ($3.12 high, $3.06 close), indicating bullish conviction. Key resistance is evident near $3.12–$3.13—a level tested multiple times in April and July 2025—which now serves as immediate overhead supply. Support rests at $2.97 (July 16 low), backed by the $2.85–$2.90 zone, where price consolidated in May and June. A sustained close above $3.12 would signal bullish continuation, while failure could trigger a retest of $2.97.
Moving Average Theory
The 50-day moving average ($3.01) recently crossed above the 100-day MA ($3.13), forming a bullish "golden cross" on shorter timeframes. However, the current price ($3.06) remains below both the 100-day and 200-day MAs ($3.33), reflecting intermediate-term resistance. This configuration suggests nascent short-term bullishness within a broader downtrend, as the 200-day MA’s downward slope caps upside potential. Confluence exists near $3.10–$3.13, where the price aligns with the 100-day MA.
MACD & KDJ Indicators
MACD registers a bullish crossover, with its histogram turning positive for the first time in a month, signaling strengthening momentum. Conversely, KDJ readings (K: 72, D: 67, J: 81) show the J-line exceeding 80, flashing an overbought warning. While MACD supports near-term upside, KDJ divergence raises caution—price action may consolidate or pull back to alleviate overbought conditions. This misalignment between indicators warrants monitoring for exhaustion near resistance.
Bollinger Bands
Bollinger Bands are expanding after a prolonged contraction phase, reflecting a volatility breakout. The price touched the upper band ($3.12) before retreating to close near the midline ($2.96), suggesting resistance at the upper band. A decisive close above $3.12 would confirm bullish strength, while a reversal could see the price target the lower band near $2.80. Band expansion typically precedes directional momentum, supporting the current bullish attempt.
Volume-Price Relationship
Volume surged by 25% during the initial rally day (July 16) but moderated by 17% on the subsequent follow-through (July 17), signaling tempered enthusiasm. Despite this, average volume over the three-day rally exceeded the 20-day average by 20%, validating price gains. A breakdown below $3.00 on rising volume would invalidate this bullish volume signal, indicating distribution.
Relative Strength Index (RSI)
The 14-day RSI sits at 65, rising from neutral territory but not yet overbought (>70). Its moderate ascent alongside sharp price gains indicates room for upside before exhaustion. However, proximity to overbought territory aligns with KDJ warnings, suggesting short-term overheating. Investors should watch for bearish divergence—where price makes higher highs against flat/declining RSI—as a reversal precursor.
Fibonacci Retracement
Using the major downtrend swing from $3.69 (February 2025 peak) to $2.77 (April 2025 trough), key Fibonacci levels are drawn. The current rally faces resistance at the 38.2% retracement ($3.12), which aligns with Bollinger Band and candlestick resistance. A breach above this could reach the 50% level ($3.23). Conversely, failure here may see a pullback to the 23.6% support ($2.98), coinciding with moving average confluence.
Confluence and Divergence Summary
Bullish confluence appears between the MACD crossover, volume-supported breakout, and moving average cross. Bearish divergence emerges from overbought KDJ, RSI near resistance, and the Fibonacci/Bollinger ceiling near $3.12. The $3.10–$3.13 zone is critical; sustained momentum there would confirm bullish control, while rejection may trigger profit-taking toward $2.97–$3.00. Given technical ambiguity near resistance, probabilistic upside appears capped near-term without significant volume expansion.