The market continue the short-term uptrend on low volumes with the VNI and HNI increasing 1.53% and 0.36%, respectively. Both indices show that the uptrend will persist in the next sessions. Notably, the VNI moved above the 400 mark.
At the end of Friday’s session, both indices corrected slightly in a narrow range with trading volume remaining low. The VN-Index loss 0.31% and the HNX-Index fell 0.79%. From the charts we saw both indices tended to move sideways compared with yesterday and Test-supply occurred in the resistance area in today’s session. Notably, negative signs appeared on the price charts on both indices, signaling that the market may not be able to regain the uptrend yet in next week’s first session.
The market uptrend continued today but profit-taking pressure increased towards the end of the session with the VN-Index rising 1.07% and the HNX-Index rising 0.06%. According to our technical charts, both indices are going to touch resistances of 400 and 62 on the VN-Index and HNX-Index respectively.
The VNI broke above the 430 mark, but the HNI decline by 0.24%. From our technical view, a correction of the VNI is possible after it touched the 23 July 2012 top while the HNI continues to move sideways compared to the two previous sessions. According to the technical pattern, the short-term uptrend maintains above the VNI, but there is no clear sign for the HNI.
As we expected in our previous technical report, the market had a positive rally today with significantly improved trading volume on the 0.77% and 0.51% increase of VNI and HNI, respectively. From our technical view, the VNI reached the major resistance at 430 and signaled a break above this mark with increased volume, while the HNI flattened compared to the previous session.
Short-term view (5-10 days): The VNI closed 0.33% or 1.42 points lower at 425.56 while the HNX fell 0.64% or 0.45 points to 70.34. The short-term technical pattern, according to our momentum and trend models, remains positive. The VNI touched the short-term resistance line as outlined on page 2. We assume that a lot of market participants are focusing on this level. With the current technical constellation, the odds are high for a break above and a test of 450 is expected over the next days.
Short-term view (5-10 days): The VNI closed 0.25% or 1.07 points higher at 423.57 while the HNX jumped 1.29% or 0.9 points at 70.48. Volumes in general were small with USD 17mln in the south and USD 13mln in the north (large PT transactions excluded in the HNX number, SQC alone accounted for 38% of HNX volume). Both our technical inputs, the trend indicator as well as the momentums are signaling more strength to be sen.
Short-term view (5-10 days): The VNI closed 1.18% or 4.95 points higher at 423.16. However, VNM alone accounted for 2.87 points of today’s up move. The HNX rose 2.23% or 1.54 points to close at 70.45 as 50%. We wrote last Wednesday that usually consolidation periods (low volatility) don’t last long in this market but were waiting for either fresh BUY or SELL signals. With today’s move, the short-term technicals have improved, but both benchmarks did not yet finally trigger clear BUY signals.
Short-term view (5-10 days): The VNI closed 0.47% or 1.93 points lower at 412.55 while the northern HNX fell 0.71% or 0.49 points to close at 68.7. Both indices have traded sideways over the last 5 trading days with just minor volatility. The short-term rating remains NEUTRAL.
Short-term view (5-10 days): The VNI closed 0.4% or 1.64 points lower at 413.16. The HNX retreated 1.06% or 0.74 points to end the week at 69.35. Both markets are struggling to move higher, while at the same time reluctant to fall significantly lower. The short-term pattern is rather mixed to us and we still recommend to stay on the side lines over the next couple of days as the market might trade in a range between 405 – 425 and 68 – 72 respectively.