Market Update [November 08] – VN-Index retreats from highs, but remain up on day
On Thursday (November 8th), the VN-Index opened higher following a surge in markets across the globe. However, the index pared its earlier gains but remained on track to finish higher for the day as some large caps retreated. Conversly, VHM was the most positive impact on the index, rising 2.75%.
By the closing bell, the VN-Index gained 4.12 points (+0.45%) to close at 926.28. The HSX’s trading volume was more than 145 million shares, worth nearly VND2,800 billion. Market breadth was widely positive as advancers outnumbered decliners on a ratio of 182-to-102 stocks. Foreign investors net bought nearly VND35 billion on the HSX.
In view of technical analysis, the VN-Index’s chart shows a red candlestick called “Inverted Hammer” at the strong resistance level of 931, or MA(20), is quite negative. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 910 – 920, the next support range is forecast at 890 – 900. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 930 – 940, at which investors can sell a part of the existing short-term portfolio.. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.
Please see the attached file for more details.