Kathmandu. The Nepal Stock Exchange (NEPSE) index closed at 2960.40 points on Tuesday, up 23.83 points. With this increase, the market has reached its highest level in about eight months, while the overall trend is still clearly bullish. Tuesday's candle invalidated the bearish candle formed the previous day by closing above the high. This clearly indicates that the uptrend is continuing in the market. In addition, the market is still trading within the upward channel, where a strong rebound from the lower trendline has been seen.

3000-3028 area is crucial

ADX has reached about 36 points, confirming the strength of the trend. The golden cross seen in the MACD is still valid, while the market's upward movement along with the upper band of the Bollinger Band shows aggressive bullish momentum.

Technically, the area near 2850-2870 points appears to be the first strong support. Below that, 2750-2780 points is another support. Based on the long-term trendline, the 2560-2600 area is a strong support, while 2469.37 points is another important lower base.

According to analysts, the risk of a major decline seems low as long as it remains above 2800. However, the market is in the overbought zone as the RSI has reached 74.70. This indicates that a short-term correction or consolidation may occur around the 3000-3028 area. In such a situation, intraday corrections, small-bodied candles or sideways movements may be seen.

The NEPSE is currently technically strong and the uptrend continues. But the area above 3000 has now become a ‘test zone’—from where the market either breaks out to new highs or regains momentum after a short correction. Therefore, it seems necessary for investors to make strategic decisions while managing risk.