Market Update [June 24] – VN-Index rises nearly 4 points on poor breadth
On Monday (June 24th), although rising nearly 8 points at one point, however, the VN-Index cut its gains due to high profit-taking pressure. Particularly, VCB, VIC, VHM, SAB and NVL were the large-cap gainers, offsetting the relative weakness in VNM, GAS, HPG, PLX and POW. By the closing bell, the VN-Index rose 3.65 points (+0.38%) to close at 962.85. Trading volume was nearly 150 million shares, worth VND3,400 billion. Breadth was negative, with losers topping gainers 165 to 115. Foreign investors net sold VND89 billion on the HSX, mainly in SBT.
In view of technical analysis, the VN-Index’s daily chart shows a green candlestick called “Shooting star” at the resistance range of 960 – 970, which is a sign of negativity. Therefore, we believe that, in a negative scenario, the VN-Index will test the nearest support level of 957, or MA20, the next support level is forecast at 956. In a positive scenario, if the index rebounds, the nearest resistance range of VN-Index will be forecast at 960 – 970, at which investors can sell a part of the existing short-term portfolio.
We recommend investors to observe carefully the support levels of 957, 956 and 955, at which investors can buy a part of the short-term portfolio, and consider cutting loss if these levels are broken. Based on Kelly formula, the recommended proportion of the portfolio is 70% cash/ 30% stocks.
Please see the attached file for more details.