Market Update [May 16] – VN-Index posts 5-day gain streak
On Thursday (May 16th), although losers overwhelmed gainers, however, the VN-Index still closed higher, logging a 5-day winning streak thanks to the rise of some large caps such as VIC, VHM and VNM. By the closing bell, the VN-Index inched up 0.05 points (+0.01%) to close at 975.69. Trading volume was over 170 million shares, worth VND3,900 billion. Breadth was negative, with losers topping gainers 124 to 158. Foreign investors net sold VND131 billion on the HSX, mainly in VHM.
In view of technical analysis, the VN-Index’s daily chart shows a short red candlestick called “Shooting star” at the upper trend line of the descending triangle pattern, which is a sign of negativity. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support range of 960 – 970, the next support range is forecast at 940 – 950. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 980 – 990, at which investors can sell a part of the existing short-term portfolio.
We recommend investors to observe carefully the support range of 960 – 970, if this range is broken, the VN-Index may return to the short-term downtrend. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.
Please see the attached file for more details.