Is NEPSE breaking out or correcting? Index at 2653.40 (-8.31 pts). 0/0 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-07-05
NEPSE closed at 2653.40, down -8.31 points (-0.31%) from the previous close of 2661.71. The index traded between 2646.78 (low) and 2673.14 (high), opening at 2673.14.
Is today's NEPSE action a sign of breakout momentum or a correction? Let's analyze the evidence.
Breakout Signals
- More losers (20) than gainers (20) — bearish breadth
- Only 0/0 MACD above zero — weak momentum
- More bearish (0) than bullish (0) crosses
- Top gainer volume is thin — move may not sustain
Correction Signals
- Limited bearish divergence
- 0 expanding — momentum intact
- More stocks in declining sector (HYDRO POWER: 9) than gaining (HYDRO POWER: 8)
Key Levels
- SGHL: Support Rs. 359.5, Resistance Rs. 395.7
- SNORL: Support Rs. 618.6, Resistance Rs. 690.6
- KAHL: Support Rs. 349.8, Resistance Rs. 390.6
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.