Is NEPSE breaking out or correcting? Index at 2667.97 (+4.79 pts). 0/0 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-08-05
NEPSE closed at 2667.97, up +4.79 points (+0.18%) from the previous close of 2663.18. The index traded between 2652.91 (low) and 2673.12 (high), opening at 2666.95.
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 SOHL has strong volume (909,305)
Correction Signals
- Limited bearish divergence
- 0 expanding — momentum intact
- Gaining sector is broader
Key Levels
- SOHL: Support Rs. 576.5, Resistance Rs. 672.7
- SIPD: Support Rs. 646, Resistance Rs. 708
- RIDI: Support Rs. 362, Resistance Rs. 387.2
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.