Weekly Technical Analysis of NEPSE index; Volatility may increase next week; see the detail analysis here

Fri, Aug 10, 2018 7:47 AM on Stock Market, Technical Analysis, Video Tutorials, Weekly Analysis, Featured,

-ShareSansar

Week's Index movement: This week index had opened at 1191.24 points and closed at 1180.63 points by losing 10.61 points (0.83%). On the first trading day, the index had lost 1.43 points, on the second day it lost 0.21 points, on the third-day it lost 1.46 points, on the fourth day, it lost 0.89 points and on the last day, index had lost 6.69 points. We have witnessed a low volatile market this week.

Technical Analysis

Candlestick Pattern: The Special pattern was not observed on both daily and weekly candlestick.

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

According to EMA's, the short-term, mid-term and long-term trends are all bearish.

Bollinger Bands: Bolliger band is shown below with the NEPSE index main chart and RSI. Bollinger bands is giving a strong signal for the high volatility period. Another important thing is that the index is in the lower band of Bollinger Bands and middle line (20 days simple moving average) is above the NEPSE index value. Furthermore, Bollinger Band is supporting the downtrend.

Relative Strength Index (RSI): RSI is shown above in the chart. As shown in the figure, RSI is near to the over-sold position of 30 and currently, its value is at around 36. The strong signal was not observed from the RSI indicator.

Volume: Volume chart with the NEPSE index is shown below

The average turnover for the last two week is around Rs 20 crore and is not very lucrative. A signal from the volume chart is not strong but it is backing the downtrend.

MACD: MACD chart is shown below. MACD is negative though it is close to the neutral zero point. A signal line (red line) had met the MACD line (blue) that shows sellers could dominate the game.

NEPSE index had been moving in the descending triangle in the last one month as shown in the figure below.

NEPSE index is trading in the base (1180) of the triangle. Next week, we could see the breakout of this triangle from the downside. An index was not able to close below the base of the triangle in last one month.

Support and Resistance: Currently, the NEPSE index is trading at the support of 1180 points and resistance is in the range of 1195-1200. Strong Support for the index is in the range of 1170-1130 points and strong resistance is in the range of 1244-1285 points.

Support and resistance level according to Pivot Point

Pivot Point: 1184

1^st Resistance: 1189 1^st Support: 1175

2^nd Resistance: 1198 2^nd Support: 1170

Prediction: Continuation of the major trend and volatility may increase.

This week NEPSE's statistics:

Index open: 1191 Index Closed: 1180

Index high: 1193 Index low: 1179

Total turnover: Rs. 91.87 crore

Total transaction: 16370

Total traded shares: 36.47 lakhs.

This week’s market summary in Tabular form.