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Nepse’s Technical Analysis

  1 min 46 sec to read

 
Relative Strength Index (RSI)
The RSI remained in the overbought zone from November 11, 2013 to December 29, 2013 reaching as high as 92.77 on November 24, 2013. Since then, it retraced slightly and has been hovering in the neutral zone until January 16, the last trading day of week where it ended at 70.60. The positive outcome of election results has provided a boost to investor confidence which has brought huge volume into the secondary market. Many investors who were sitting on the sidelines in the past several years are re-entering the market. Generally, when RSI reaches very high levels, there is a tendency to slide down further. However, this increased volume in the last two months has helped Nepse as well as RSI maintain them in higher levels. 
 
Moving Average Convergence Divergence (MACD)
The MACD is a momentum oscillator formed by using two different types of moving averages which provides specific buying or selling signals. The MACD line reached its highest point of 48.31 on December 22, 2013 and has been trending lower since. On December 31, 2013, the MACD line breached the signal line and crossed below which triggered a sell signal to market participants. In the past trading week, the MACD line has been moving towards the signal line. If the MACD line crosses above the signal line in the near future, it would present a buy signal. However, if there is no change in the current trend, it may signal further decline in Nepse.  
 
Market Summary 
(As of January 16, 2014)
Close: 794.64
High: 794.64 
Weekly Change: 21.88 (2.83%) 
Daily Average Turnover: NPR 387.02 Million 
Total Weekly: NPR 1548.10 Million 
Immediate Support: 753.17
Immediate: 806.82
Relative Strength Index (RSI): 70.60
Moving Average Convergence Divergence (MACD): 23.78 and 27.02

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