20160721_BSC_Vietnam Daily Review_EN_Gloomy session

Highlight

Gloomy was probably the right word to describe this 21/7 session as the technical recovery of market mainly focused on the movement of some pillar. VNM today no longer rallied to lift VN-Index, index remained positive most of the time thanks to support of other blue-chips such as VIC, VCB and GAS. However, this technical recovery in the support level 660 did not attract the cash flow. Even when index was green the decliners always overnumbered gainers while liquidity also remained very low. Every day, there was pillarof the market attracting the attention, after VIC, VNM, today HSG unexpectedly fell to the floor at the end of session.

Recommendation

The market declined slightly at the closing, some sectors corrected strongly, trading volume decreased compared to the previous trading session and maintained below 10-day average. VN-Index lost support 660 by the end of the session is not a good for the market, signaling the possibility to correct further to 640 zone. At the same time, the technical indicators are no longer providing similare signals and begin to show mixed: MACD showed negative divergence, MFI fell below the trendline, the RSI continuously declined, PSAR showed sign of reversal though ADX still remained above 25. The short-term risk is rising and investors are recommended to continue to reduce the stock weights in the portfolio.