NEPSE Probable Scenario!!

In technical analysis we say history repeat itself let’s see how did NEPSE moved previously from the monthly aspect. On July 2008, NEPSE made a high of 1175.38 and declined to 292 on June 2011(Data taken form SS Pro). On Jan 2016, market breakout the previous high of 1175.38 and made another high of 1888.36 on July 2016. Market retested the area of 1175 on Feb 2019 after breakout of 1888.36 on Nov 20 and made a record of all time high of 3226.89 on Aug 2021. Similarly, market is near to retest the level of 1888.36 and can create another all-time high on the coming days. 

Whenever the market retest on the very first time in the support zone similarly what happened on Feb 2019, there is high probability of market taking a good upside move but that does not mean market must bounce back at that very level. But we can take an entry position with stop loss which is very important thing when we take technical analysis as a tool for trading purpose. 

Retest area is 1880 -2000 which is also the psychological level where trades and investors might react. 

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