Nepse Weekly Update: June 26 - june 30, 2016
Fri, Jul 1, 2016 7:17 PM on Latest, Featured, Stock Market, Weekly Analysis,
Overall the market seems positive throughout the week
The Nepse index gained a staggering 38.06points (or up 2.26%) with the close 1723.23 points.. The RSI has stayed in the overbought territory by staying above the 70’s zone. Last week the risk closed at 78.49 level and this week the RSI closed in the level of 83.43(or up 5.92%). The RSI indicator highlights bullish presence, as well as buying pressure in the market.
Fibonacci resistance
Since, the market broke above the previous high we have to use the Fibonacci resistance to find new resistance level. There seems to to resistance of 1800 with support of 1500. There will be small correction at the level of 1800 as shown by the fibonacci projection.
Bollinger Band
Looking at the volatility of the the market the overall market volatility has increased as there is expansion of the the band. This indicates the market volatility may decrease in the upcoming week. The tightening of the bands is often used by technical traders as an early indication that the volatility is about to increase sharply.The index has touched the upper part of the Bollinger Band which indicate overbought position.
Market trend
The overall market trend is positive as all the exponential moving average is upward trend. The is bullish situation still hold in the market as the MACD line is above 0.
Volume analysis
The overall NEPSE volume have increased this week mostly due to increase in transaction of Banking stock. . There is decrease in hydro stock whereas other indices volume seems positive.
Verdict
The overall situation of the market is bullish this week as there is no sign of negative movement in the market hence the market will remain positive next week.
Akhilesh Bikram Sthapit
