Wipro for 1st june 2009

Weekly chart has a strong bullish peak on macd-h from the current move. Force index has retraced bearish divergence, reached zero levels & moving up. Price is retracing to value zone with a rising EMA. As there is no weakness on macd-h a retest to precious high or above is likely.

Daily chart turned bearish after a bearish divergence on macd-h, even force index has retraced multiple bearish divergence with a strong down spike. At the right edge force index is flat,

macd-h has ticked up with a rising EMA. As both EMA & amcd-h turns in the direction of weekly charts, we get a buy signal on this scrip.

Trade long above Friday's high at 384.75 with a stop below nearest support at 348.00 for a target of Rs. 465.00, weekly resistance.

The risk on this scrip is Rs. 36.75, add commission at Rs. 5.75, totaling Rs. 42.50 per share. We can buy 47 shares.

As we have 2 trading picks this week, we are allowed to hold only 6% open risk on our capital at any given time. From this weeks picks we decide to trade both with a 1% risk to keep another 2% open for future trade signals.

Please analyse the charts and trading picks with your own judgement, trade only after you are fully convinced with the probability and expectancies.

Happy trading.