20160630_BSC_Vietnam Daily Review_EN_Skepticism

Highlight

The efforts from Bank of England to stable markets, via three times funding banking system since Brexit with a total value of GBP 9bil, seemed to have achieved initial success as FTSE returned to pre-Brexit level. On commodity markets, oil rose slightly as US stockpiles declined. The positive news created strong upward momentum when market opened, VN-Index surpassed 633 pts for the first time after two months. VIC and VNM were the leaders today. Although momentum weakened during today session, the market remained green but market breadth turned to negative. On HNX, the HNX-Index traded with weaker momentum so that correction left the index closed slightly lower.

Recommendation

The market rose impressively since the beginning of the session to approach resistance at 638 before going down gradually and eventually closed at 632.3. The first attempt of VN-Index to reach the peak of years has failed, trading volume also declined today despite that price increased, the VN-Index closed with black inverted hammer candlestick pattern, signaling ability of short-term bearish reversal for VN-Index. VN Index is expected to test the support 630 in the next session, in extreme cases if VN-Index lost 617 MA support, it is recommended that investors reduce the stock weights. Investors who are interested in movements of the global stock markets post-Brexit can refer to our views in page 2.