Weekly Technical Analysis of NEPSE index; Know the market trend, support and resistance level for next week

The market was totally bearish this week. NEPSE index keeps on loosing point's day after another. On the first trading day, the index lost 14.03 points, on the second day it lost 8.22 points, on the third day it lost 4.18 points, on the fourth day it lost 1.47 points and on the last day it lost 3.92 points.  NEPSE was unable to form single green candle this week.

Technical Analysis of NEPSE index

Candle-Stick

All the candles are bearish this week. On daily candlestick, we haven’t observed any special pattern and on a weekly candlestick, a type of bearish marubozu was observed.

Exponential Moving Average (EMA)

We have used three EMA's of time period 5 days (blue line), 20 days (red line) and 180 days (green line).

We have observed the dead cross this week which supports the bearish trend. The long-term trend is still bearish.

Volume: Volume chart with NEPSE index main chart is shown below.

Last week's average volume is near the average volume of the last two months. Now considering, the volume of last week, we have witnessed the abrupt increment in volume on the last trading day whereas the price of index didn't fall accordingly, on that day and this can be taken as a positive signal.

Bollinger Bands

The Bollinger band is shown below with NEPSE index main chart. The upper band and lower band has maintained the constant distance this week.

Next week, volatility could remain the same or could decrease as well. The middle line is above the NEPSE index value thus the market sentiment can be considered negative from BB.

From the RSI and MACD indicator, we haven’t observed any special pattern.

Support and Resistance for next week

Major support is in the range of 1170-1130 and major resistance is in the range of 1244-1285. The minor resistance is at the 1213 points.

Support and resistance level according to pivot points

Pivot Point: 1189.08 points

1^st resistance – 1200 points              2^nd resistance -1222 points

1^st support   - 167.43 points              2^nd support      - 1156.33 points

This week's market statistics

Index Open - 1210.32                      Index Close - 1178.50

Index High – 1210.75                          Index low- 1178.00

Total Turnover- Rs 1.17 arba

Total transaction-16620

Total shares traded- 44.21 lakhs