Nepse trading above support of 1540 indicates positive sentiments

Nepse Index  dated 26th September, 2017  :     1549.46 Turnover of 26th September, 2017:   32,07,47,490   Relative Strength Index (RSI) – Relative strength  index  is below netural zone of  50. RSI and index  both are moving in a same direction. There is no any negative divergence  between Nepse index and RSI. RSI is rising from Over Sold Zone, and is  at  43.99  level.   Bollinger Bands – Tighting of  bands indicate  price volatility in near future. Currently, upper band and lower band of  Nepse index  are far from each other. It indicates less volatility in up  coming days.   Moving Average Convergence  & Divergence (MACD) –  Moving average convergence & divergence  is trading below 0  level. MACD  is  designed to identify convergences, divergences  and crossovers. Recently, MACD line have crossed signal line below zero level. Both MACD and Signal line are in bearish zone but moving towards  bullish zone.   Moving Average -  Moving average are used to identify current price trends and the potiential for  a change in trend. Nepse Index is trading below its 180 EMA and  20 EMA but above its  5 EMA. Nepse Index trading  above its 5 days exponential moving average indicates short term bullish.   Overview: Nepse index started to decline from a high of 1675  made on 8^th of  September to low of  1483. 1480 was strong support level.  Nepse index bounce backed from 1483 level. 1540 and 1480 are 38.2% and  50%  retracement level of  1748 and 1218 . So, both 1540 and 1480 are critical  level for Nepse. Trading above  1540 indicates bullish and trading  below 1480 indicates bearish. In past fews days, Nepse is hovering around 1540  level, creating base for future movement. Relative Strength Index  and Moving Average Convergence and Divergence both are  indicating short term bullish.   Support  Level: 1540, 1480, 1440 Resistance Level: 1556, 1610, 1675   Sagun Shakya Technical Analyst   Disclamer: Opinions expressed are those of the individual authors and do not necessarily represent the opinion of ShareSansar.com This commentary is a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. IMS Investment Management Services Pvt. Ltd accepts no liability whatsoever for any loss arising from any use of this contents.