Is NEPSE breaking out or correcting? Index at 2766.78 (-13.47 pts). 0/268 MACD above zero, breadth 1.00 A/D ratio. Breakout and correction signals analyzed.
Breakout or Correction? — 2026-06-04
NEPSE closed at 2766.78, down -13.47 points (-0.48%) from the previous close of 2780.25. The index traded between 2762.74 (low) and 2786.50 (high), opening at 2783.48.
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 0/20 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
- Only 0/20 expanding histograms — momentum fading
- More stocks in declining sector (HYDRO POWER: 10) than gaining (MICROFINANCE: 8)
Key Levels
- KHPL: Support Rs. 601.5, Resistance Rs. 658.8
- NYADI: Support Rs. 385.2, Resistance Rs. 439
- CFCL: Support Rs. 557, Resistance Rs. 615.1
Verdict
NEUTRAL — mixed signals suggest consolidation rather than a clear directional move.