Dec Sat 2023 09:15:50
Kathmandu. There have been five days of trading in the stock market this week. In five days, the market increased on four days and decreased on one day. The market closed at 1,994.6 last week and closed at 2,109.1 this week. On this basis, the market has closed this week with an increase of 114.5 points. In the previous week too, the market had increased by about 142 points. This week, there was a transaction worth 31 billion 29 million rupees in the secondary market.
Technical Aspects: Elliott Wave Theory
This theory was presented by Ralph Nelson Elliott in 1939. This wave is considered very reliable in technical analysis because this wave represents the psychology of millions of investors.
Looking at the current state of the market from the last low point of 1818 to 2150, the cycle made by the market through the Elliott wave minute degree shows that in wave 1, the market last low point lasted from 1818 to 1920. After that, Wave 2 is seen to be 0.99 percent of Fivanasi's correction until 1825.
After that, the market seems to run in a short-term wave 3. This is up to 2016 with Fibonacci's gain of 1.61 percent. Wave 4 is re-corrected until 1952. This week, the market reached 2150 with wave 5 and wave A was formed in the last trade. The market can complete the current one-minute degree cycle by increasing a few points to make Wave B and again making Wave C in the next week by coming to around 2000.
Bollinger Bands, MACD and RSI
Looking at this week's market through the Bollinger band, the market that faced resistance in the middle band last week has faced resistance at 2,150 in the upper band this week. Looking at the volume, this week, the business has almost doubled compared to the previous week.
Based on pivot analysis:
Pivot analysis is based on the maximum, minimum and closing prices of stocks and derivatives to determine their future price fluctuations.
Resistance to rise:
Resistance 3 –2203
Resistance 2 –2109
Resistance 1– 2052
Pivot Point: 1960
Support 1– 1901
Support 2– 1808
Resistance 3 –1750
Technically speaking, this situation means that the market is making a 'high low' in the Dow theory. Which is also understood as an entry point in the market. Elliott wave also means that the buzzer is making a small correction after some time and is planning an upward journey again. Looking at this calculation, if there is a correction in the market for a few days in the coming week, then it can be a healthy correction.
After that, when the wave 3 of miner runs, the market can set a journey up to 2,500 points and in wave 5, up to 3,000 points in the next one and a half years. Which seems to be confirmed by the declining interest rate, increasing liquidity and soft policy of Nepal Rastra Bank.