Understanding Support and Resistance
Support is a price level where buying interest is strong enough to overcome selling pressure. Resistance is where selling pressure overcomes buying. These levels are created by previous price action and can be identified through pivot points, previous highs/lows, and moving averages.
Pivot Point Analysis for NEPSE Banking Stocks
Banking sector pivot levels (March 23, 2026): KBL - Pivot: Rs.241.3, S1: Rs.236.9, S2: Rs.230.5, R1: Rs.247.7, R2: Rs.252.1 (currently at Rs.246.4, near R1). NMB - Pivot: Rs.267.4, S1: Rs.263.4, R1: Rs.273.8 (at Rs.269, between pivot and R1). GBIME - Pivot: Rs.255.0, S1: Rs.251.9, R1: Rs.260.1. MBL - Pivot: Rs.273.3, S1: Rs.266.7, R1: Rs.282.7.
Breakout Strategy
Bollinger Band Squeeze Breakouts
When Bollinger Bands narrow (squeeze), it signals low volatility and an imminent big move. Currently 3 stocks in BB squeeze: NICGF (bandwidth: 0.031), PBD88 (0.037), SBID83 (0.024). When these bands expand, expect 5-10% moves.
Volume-Confirmed Breakouts
A breakout is only valid when accompanied by above-average volume. Look for vol_ratio above 1.5. Stocks near resistance with rising volume: KBL (vol: 1.5x, near R1 at Rs.247.7), TAMOR (vol: 5.5x, strong buying).
Fibonacci Retracement Levels
Fibonacci levels at 23.6%, 38.2%, 50%, and 61.8% provide natural S/R zones. The most reliable level is 61.8% - stocks often bounce here during pullbacks in an uptrend.