HOSE Vietnam Stock Index(VNI) – Bulls are dominating in this correction period

The Vietnam market has been performing very well since the VNI hitting a bottom of 235.5 points in end February this year. The market took a turn and rallied more than 100% to close at a high of 512.46 points on the 9th of June. Then the market took a breather and corrected downwards to 412.88 points (support level of an uptrend line) before rebounding to close at 466.76 points today. However, just about two years ago, the benchmark index was above 1,000 points.


Daily VNI chart as at 31 July 2009 using NextVIEW Advisor. Click on chart for larger view.

Technically, the market is still in a major up trend correction with the short term 30-day moving average declining while the longer term 60 and 90-day moving averages are increasing. The Momentum indicators which shows bearish domination last month has changed its course to be bullish. The RSI and Momentum indicators are now above the mid-level that separates bull and bear strength. This means that the bulls are likely going to take the market out of the correction and bring it to test the 520 points resistance level again. Support level is at 410 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.