Is NEPSE breaking out or correcting? Index at 2622.48 (-19.34 pts). 0/0 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-08-18
NEPSE closed at 2622.48, down -19.34 points (-0.73%) from the previous close of 2641.82. The index traded between 2616.17 (low) and 2646.86 (high), opening at 2644.41.
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: 11) than gaining (HYDRO POWER: 9)
Key Levels
- SAPIL: Support Rs. 456.5, Resistance Rs. 524.6
- MEPDL: Support Rs. 540.3, Resistance Rs. 603.2
- MEHL: Support Rs. 267, Resistance Rs. 285
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.