NEPSE shows bullish signal this week, is recovery on the way?

After weeks of struggle, NEPSE finally showed signs of hope. This week, share trading took place for only four days. Out of those, the market rose on two days and fell on two days.

At the end of the week, NEPSE closed at 2,652 points, gaining 140 points compared to last week. Market capitalization also increased by about Rs 234 billion, reaching Rs 44.33 trillion.

Bullish engulfing pattern appears

On the weekly chart, a strong technical signal called the “bullish engulfing pattern” has appeared. This forms when a green candle fully covers the red candle before it. It is often taken as a sign of recovery, especially near a support level.

Indicators showing mixed signs

• Moving averages suggest NEPSE could face resistance near 2,704 points.
• Bollinger Bands show the index bouncing back from the lower band.
• MACD is still weak but slowly improving.
• RSI has recovered from the oversold zone and now stands at 42.

Together, these tools indicate that the market is trying to stabilize after a long fall.

Support and resistance levels

• Resistance: 2,873 / 2,995 / 3,065
• Support: 2,679 / 2,608 / 2,485

Last week, NEPSE dropped by 160 points. This week, it regained 140 points. The move suggests the recent sharp fall may be ending. If NEPSE can stay above 2,700 in the coming days, it could confirm the start of a new uptrend.

For now, the market is showing recovery attempts, but whether this leads to a strong rally or just a pause remains to be seen.