20160722_BSC_Vietnam Daily Review_EN_Late support

Highlight

After breaching the important support level at 660 points yesterday, market immediately fell freely after opening, down to nearest support level at 645 points as strong selling pressure appeared in all pillars. Thanks to the demand at bottom in VNM, the fall of the market has been stopped but strong selling pressure in other blue-chips lenghthened the fall. VN-Index fell 19 points once today, a great fall which was seen in Brexit Friday. Late afternoon, bottom fishing activities in 640 point threshold helped narrow the decline of index.

Recommendation

As expected in previous report, the market fell sharply in today's trading session, continuously broke through the support zone 645-650, approached trong support 640 and recovered in the session before closing at 649.9 (-1.5% ). Trading volume increased significantly to above the 10-day average. Besides MFI, PSAR, MACD continued showing negative signal in the short term from the previous trading session, RSI fell below the trendline today. However, VN-Index is likely to recover in the coming session as it is being well supported by the Ichimoku cloud as well as the 640-645 zone. Investors should bear in mind the next resistance located at 660 of VN-Index.