Is NEPSE breaking out or correcting? Index at 2594.27 (-5.31 pts). 0/0 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-08-25
NEPSE closed at 2594.27, down -5.31 points (-0.20%) from the previous close of 2599.58. The index traded between 2588.18 (low) and 2608.44 (high), opening at 2598.49.
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
- Gaining sector is broader
Key Levels
- SAPIL: Support Rs. 917, Resistance Rs. 1054.7
- CREST: Support Rs. 1028.2, Resistance Rs. 1253
- NADEP: Support Rs. 685, Resistance Rs. 742
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.