Published Date: 07/08/2014
On 5th August, the VN-Index closed at 607.73 (+8.69pts, +1.45%),being the 3rd successive rising session and exceeding the previous peak at 605.78. The index will tend to retest theresistance of 5-year peak at 609.46 in the coming sessions.
In the recent 3 weeks, the VN-Index was fluctuating in a narrow range of 590-605 with improving liquidity. 590 is the current support as the index has not fallen through this level for several sessions and as it is close to the MA20 line (593).
Technical indicators support the VN-Index to go up in the short term.
The next resistances are the previous peak at 609.46 and the Fibonacci Extension 150% equal to 611.65. The VN-Index is likely to reach these thresholds in the coming sessions.
Forecast: The VN-Index may continue the current uptrend but there may also be corrections when it faces the previous peak and the next resistances.
Short Term Trading Strategy: Holding as the index continues going up. Investors could consider buying stocks with highly improving liquidity that are already above the previous peaks.
