Wipro Shares Plunge 4.89% to $2.92 Amid Bearish Technical Signals

Wipro (WIT) declined 4.89% in the most recent session to close at $2.92, extending losses to a two-day decline of 5.50%. This technical analysis evaluates key indicators to contextualize this movement within the broader price trajectory.
Candlestick Theory
Recent candlesticks reveal pronounced bearish momentum. The 2025-07-10 session formed a long-legged doji with a high of $3.0234 and low of $2.87, closing near the session's midpoint. This pattern indicates intense intraday selling pressure partially recovered by buyers, establishing $2.87 as immediate support. Resistance is visible at $3.08, corresponding to the July consolidation zone. The consecutive bearish candles confirm a breakdown below the 100-day psychological barrier.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bearish alignment. Current price ($2.92) trades below all three key averages, with the 50-day SMA ($3.05) having crossed below the 200-day SMA ($3.18) in late June. This "death cross" configuration confirms a sustained downtrend. The widening gap between shorter and longer-term averages signals accelerating bearish momentum, with the 50-day SMA now acting as dynamic resistance.
MACD & KDJ Indicators
MACD shows bearish divergence, with the histogram expanding negatively since early July as the signal line maintains its downward trajectory. Both MACD lines remain submerged in negative territory, confirming bearish momentum. The KDJ indicator (particularly the %K line) entered oversold territory at 22 following the recent sell-off, though without positive divergence. This suggests oversold conditions lack convincing reversal signals currently.
Bollinger Bands
Bollinger Bands expanded sharply during the 4.89% decline, reflecting rising volatility. Price breached the lower band ($2.95) intraday before closing near its lower edge, indicating sustained downward pressure. The 20-day moving average ($3.04) now serves as resistance. Continued trading below the lower band would suggest potential capitulation, though mean-reversion probabilities increase with such deviations.
Volume-Price Relationship
The recent sell-off occurred on significantly elevated volume (18.8M shares vs. 30-day avg ~5M), validating bearish conviction. This distribution pattern contrasts with the May-June rallies that featured declining volume, indicating weak buying interest during recovery attempts. Volume divergence during minor bounces since mid-June further underscores the dominant downtrend.
Relative Strength Index (RSI)
The 14-day RSI has plunged to 28, deep in oversold territory. While historically such levels preceded short-term bounces (notably in April 2025), oversold conditions have persisted for seven consecutive sessions. This extended stay below 30 may indicate weakening momentum, though typically warrants caution against aggressive downside bets. The RSI's new 12-month low aligns with price deterioration.
Fibonacci Retracement
Using the March 2025 high ($3.77) and June 2025 low ($2.87) as reference points, the recent breakdown occurred below the critical 61.8% retracement level ($3.18). Current trading near the swing low ($2.87) tests the 100% extension level. Confluence exists near $2.85 (127.2% extension), which could provide next support if $2.87 fails. Any recovery would face resistance at the 50% retracement ($3.32).
Confluence and Divergence Observations
Confluence appears at the $2.85-$2.90 support zone, where the Fibonacci 127.2% extension, psychological round number, and recent swing low converge. However, bearish divergences emerge as RSI and volume oscillators show more decisive deterioration than price action. The breakdown below multiple Fibonacci levels alongside expanding MACD histogram and Bollinger Band width suggests unresolved downward momentum. Near-term prospects likely hinge on whether volume normalizes at current levels or whether the oversold RSI triggers technical buying.