Market Update [October 12] – Strong recovery, VN-Index gains over 24 points
|Strong recovery, VN-Index gains over 24 points
On Friday (October 12th), the market opened on a cautious note as U.S. stocks have the second sharp decline session. However, the market movement became more positive when the bottom-fishing cash flow was triggered after positive news from Asian stocks, helping the VN-Index rebound strongly.
By the closing bell, the VN-Index rose 24.19 points (+2.56%), to close at 970.08. The HSX’s trading volume remained high with approximately 230 million shares, worth over 5.000 billion. Foreign investors net bought VND273 billion on the HSX.
In view of technical analysis, the VN-Index’ chart shows a bullish reversal pattern called “Piercing Pattern” which is a very strong signal. Therefore, we believe that, in a positive scenario, if the VN-Index breaks out the resistance level of 973, or MA(100), the next resistance range will be forecast at 980 – 1,000, 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 940 – 960.
Please see the attached file for more details.