Market Update [October 09] – VN-Index closes higher thanks to oil stocks

09/10/2018 17:07

Report: Market Update

On Tuesday (October 9th), after two sessions of strong declines, the market has shown signs of recovery. The highlight of the market was oil & gas stocks, rose at the end of the session, contributing significantly to the rally of VN-Index.

By the closing bell, the VN-Index gained 0.07 points (+0.01%), to close at 996.12. HSX’s trading volume remained high with more than 200 million shares, worth over VND4,300 billion. Foreign investors net sold more than VND127 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows an inverted hammer candlestick at the 78.6% fibonacci retracement level, is positive. Therefore, we believe that, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 1,000 – 1,010, at which investors can sell a part of the existing short-term portfolio. In a negative scenario, the nearest support range of VN-Index will be forecast at 980 – 990 (including Senkou Span B, MA (50), the lower Bollinger Band and Kijun-Sen). Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.

Please see the attached file for more details.