NEPSE is currently in the final stage of the fourth wave triangle formation.

NEPSE forms an ending diagonal in its fourth wave triangle, critical at 2613.

Signal: bearish

Current Elliott Wave count: Wave 4

• Preferred levels:
• Support: 2568-2516
• Target: 2568-2516
• Stop Loss: 2469.37
• Invalidation: 2469.37

NEPSE is forming an ending diagonal on the c wave of the (e) wave of the ((iv)) wave triangle. The ending diagonal invalidation point is 2613. If it goes below this point, the ending diagonal will be invalidated, and we must switch to the alternative count. The whole triangle invalidation point is 2469.37 level.

In this alternative count, we’re looking for a downside for the third wave of the C of the (e) wave of the ((iv)) final 4th wave triangle. The target is 78.6% of an (c) to (d) for the (e) wave retracement. The reason for 78.6% is that (b), (c), and (d) also retraced 78.6% of the area. Since a = c for the (e) wave and 78.6% for the (e) wave, it can complete the correction for the triangle between 2576-2516 and below 2469.37. If it falls below 2469.37, it will invalidate the count.