Is NEPSE breaking out or correcting? Index at 2654.15 (-13.82 pts). 0/0 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-08-06
NEPSE closed at 2654.15, down -13.82 points (-0.52%) from the previous close of 2667.97. The index traded between 2647.72 (low) and 2678.22 (high), opening at 2666.12.
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 ULHC has strong volume (16,882)
Correction Signals
- Limited bearish divergence
- 0 expanding — momentum intact
- More stocks in declining sector (HYDRO POWER: 11) than gaining (HYDRO POWER: 10)
Key Levels
- ULHC: Support Rs. 350, Resistance Rs. 407.2
- KAHL: Support Rs. 527.3, Resistance Rs. 565
- SGHL: Support Rs. 513, Resistance Rs. 535
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.