Bought NICA at Rs. 696 (Promising Volume and Candlestick Movement)

It’s been a while since I have not invested in NEPSE.

As you know from my NEPSE trading journey, I emptied my portfolio long before the market correction.

My only lossy trade is in GUFL.

I have been watching individual stock charts and see if there are opportunities to enter.

This is how I ended up with NICA’s candlestick chart.

Impressive Candlestick Surge

I saw three consecutive days of bullish (green) candlesticks on the candlestick chart of NIC Asia Bank Limited (ticker NICA).

The pattern was very similar to the Three White Soldiers candlestick pattern, which is a bullish reversal pattern.

However, note that the first candlestick was too small for the overall formation to be considered a Three White Soldiers pattern.

Nonetheless, it indeed was an insightful formation – probably signaling the building aggression of optimistic bulls.

Combine this with the interesting volume movement, the stock felt too tempting for me to ignore.

Abnormally High Volume

There was abnormally high market participation on the third candlestick of the pattern that I described above.

The volume was way higher than the previous normal days.

High trading volume on a green day is a sign of bullish dominance.

NIC Asia Bank Limited candlestick chart
Notice the volume surge too.

Entered at Rs. 696

On the very next day after the third candle, I bought shares of NIC Asia Bank Limited (NICA) at Rs. 696 per share.

I don’t have a specific target because ideally, I like to ride the entire trend if possible.

There’s no rigid stop-loss for this one. I’ll have to look carefully if the stock loses and begins to venture near the most-recent pivot low, i.e. at the Rs. 640 level.

Update

The stock has gained minimally from there.

Interestingly, it seems to have closed above the downward trendline formed by joining two recent pivot highs.

This looks like a breakout. However, we will have to wait for more confirmation in the same direction since the price is still too close to the trendline.

A potential breakout seen in the candlestick chart of NIC Asia Bank Limited (NICA)

Let’s see how it rolls.

Click here to view my entire NEPSE Trading Journey.

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