The stock market remained weak throughout today’s trading session. From the start, prices kept falling and continued the same trend until the end of the day.
When looking at the NEPSE chart technically, a bearish marubozu candle appeared today. This pattern usually indicates a strong downward trend. A red candle without upper or lower wicks is called a bearish marubozu, while a green one is known as a bullish marubozu.
Although prices dropped, total trading volume slightly increased compared to the previous day. However, higher trading during a fall is often seen as a negative signal for the market.
From a Bollinger Band view, the market had earlier bounced from the lower band but could not cross above the middle band. The MACD still confirms a valid bearish crossover, signaling continued weakness.
RSI, which had recently recovered from the oversold zone, has again started to fall. Overall, there’s clear selling pressure across the market. According to Dow theory, NEPSE is forming a series of lower highs and lower lows, confirming a bearish trend.
In terms of support and resistance, the index closed at 2604 points today. If the market continues to fall, strong support is expected around 2580 points. If it breaks below that, the next key support lies between 2440 and 2460 points. On the upside, resistance levels are seen near 2678 and 2780 points.
Note: The stock market involves risk. This analysis is for informational purposes only and not an investment recommendation.
