BSC_Daily report 21.01.2015_Vietnam market corrected, foreigners came back to buy_CVT, HUT, HT1, CSM Updates

Like yesterday, the market continued its correction today with strong differentiation among stocks. Due to the low volume, we believe the correction can remain in the next trading day(s). The market adjustment is necessary in order to build up a more sustainable upturn trend. In the context of gasoline prices fall nearly 2000 VND / liter and lending interest rates are likely to reduce by 1%, we remain the optimistic view on the mid-term prospects of the market.

Recommendation

In the short term, we expect the scenario that the VN-Index will not decline blow the support are of 565 pts to complete the Reverse Head and Shoulders pattern, then rise up again. The volume should be improved in the next sessions to confirm the breakout out of the neckline area (aka the 580 pts resistance). However, we still leave a backup scenario which less positive, that is when the VN-Index puncture its 565 pts support area and the volume cannot be improved. In this case the above technical pattern will fail, and then investors should be more cautious and wait for more market signals.