Published Date: 20/08/2014
On August 19, the VN-Index closed at 604.64 (-0.44pts, -0.07%), being the 2nd successive sideways session around the 605+/- zone. In the short term, the index will face resistance at the Fibonacci Projection 138.2% and the Fibonacci Projection 150% equal to 603.54 – 611.65. Note that in March the VN-Index was unable to pass through this range, forming the 5-year peak at 609.46.
In the recent 2 weeks, the VN-Index has found strong resistance at 610, and is unlikely to break out without any significant improvement in the current medium level of liquidity. On the other hand, there is no sign of a deep correction and the index is still within a narrow range of 600-610. Despite improving liquidity in the last 2 weeks, the index is still in a sideways band with some slight decreases. The VN-Index has some support at 603.54 (Fibonacci 138.2%) and 600.72 (MA20).
Forecast: VN-Index trading is likely to continue to be choppy.
Short Term Trading Strategy: High frequency trading investors may sell at upper boundary and buy at lower one, while less risky investors better to wait for a more firm break out signal.
