No, still there is conformation pending for NEPSE to called its minor trend as bullish. Though the quick trade was possible after NEPSE formed a perfect hammer candle stick pattern on 8th may in a daily time frame followed by w pattern break out on 9th may at 12 p.m. in an hourly basis candle but we should also keep in mind that lower the time frame higher the chances of false signal.
Market is said to be in bullish until and unless market makes the series of higher high and higher low which is still pending in the market.
For market to change its trend from bearish to bullish in a minor trend market need to protects 2200 level for now and should make series of higher high and higher low.
BANKING INDEX
Banking index alone holds around 36% of weightage in NEPSE which means it has higher impact on NEPSE. Banking index formed an engulfing candle stick pattern on weekly time frame which indicates the reversal in the market but candlestick alone cannot determine the reversal in the market, volume also plays an important role. Volume is slightly greater in banking index compared to last week but its below 20-day average volume.
What next now?
Whoever looking for taking new position enter on breakout of 2390-2400 stop loss being at swing low for now i.e., is currently 2200.
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ReplyDeleteI am glad you went through it
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