NEPSE Update Jul 30

Day time frame 

Currently market is in the supply area and profit booking can be expected in tomorrow's market. The market has formed ascending triangle which is bullish pattern. 

Scenario 1: If the market breaks the level of 2160 and stays above it will create another buy signal with a stop loss below the trend line. The pattern will be invalidated only after it falls below the trend line. Ascending triangle pattern leads to the target around 2480-2500 but before that we can see minor resistance around 2350-2390. 

Scenario 2: Wait for market to be near trend line for new buy signal.

Dow Theory Basis 

If the market closes above 2145 market will change its trend and series of HH and HL will be formed which indicates bullish trend. Until this series continues, we can say market is bullish on daily basis.

Monthly Time Frame 

With only 1 day left for the month to end we can see a good green candle in this month with buying pressure and almost no selling pressure in this month as on today. Previous analysis continues on monthly frame. 

NEPSE update July 23

NEPSE SCENARIO ON A DAILY BASIS

Scenario 1

Break out of 2065 with above volume average without facing larger selling pressure will trigger a buy call.

Scenario 2

Green candle in the trend line area with the above average volume will trigger a buy call with stop loss below 1908-1900.

INVESTMENT IN STOCK MARKET IS SUBJECT TO RISK.BEFORE TAKING ANY POSITION CONSULT YOUR FINANCIAL ADVISER OR DO YOUR OWN RESEARCH. ANY PROFIT OR LOSSES GENERATED FROM THIS IS SOLELY FROM YOUR DECISION.

NEPSE on dow theory basis 

NEPSE scenario on monthly basis. 

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. 

INVESTMENT IN STOCK MARKET IS SUBJECT TO RISK.BEFORE TAKING ANY POSITION CONSULT YOUR FINANCIAL ADVISER OR DO YOUR OWN RESEARCH. ANY PROFIT OR LOSSES GENERATED FROM THIS IS SOLELY FROM YOUR DECISION.