NEPSE Weekly Update 13 December

An eye candy for Fib Lovers. When 1149, start of the swing, to recent 2112, a new high is connected it gives 23.6 % retracement at 1885, 38.2 % retracement at 1743, 50 % retracement at 1631 and so forth as can be seen in the image. What makes it an eye candy mentioned above is, all these fib levels are amazingly at very important levels and not just a fib retracements. 1885-1890 is the level that was all time high (previous) tested at the end of July 2016 but broken and held recently on 29 Nov to test a new high of 2112. 1743 was the previous high tested on April 2017 break and hold of which on 19 Nov made a path to test of (and unknown then if it would be broken) all time high (then) of 1890. The 1630s level shows some support at the beginning of November that propelled the index further high towards where it is today after testing a new high of 2112. Many traders believe that at around these Fibonacci levels there occurs significant activities. Many traders not only believe but also respect and incorporate the idea of broken or held support and resistance levels. More of a level, be that a support or a resistance, tested but held, stronger that level is perceived to be. And when one is broken and held it turns out to be the other. Meaning, if a resistance is broken and held successfully, then that level turns out to be a support level and vice versa. Now, I am going to relate this with information provided above and see how coming week turns out to be.

#tradewithramesh

Please note that due to market volatility, some of the above sight prices may have already been reached and scenarios played out. Trade in your own discretion.