BSC_Daily report 19.01.2015_The market is likely to get more corrections in 1-2 coming days

After moving sideways over the past week around the 575-580 resistance area, the market began to show signs of further correction when the VN-Index today fell to nearly 570 pts. The suddenly contracted volume could be seen as a negative signal; this reflects the narrowing in cash flows and can cause anxiety for investors, making the possibilities of stock holders boosting up short-term profit taking action stronger in the next days. Therefore, in 1 - 2 coming days, the market is likely to get more corrections. However, we currently believe that the VN-Index will not decline deeper than its 565 support to complete the technical pattern, then recover and rise up. We also expect the coming back of key stocks such as Bank or Oil and Gas group to lead the market again.

Recommendation

Based on the above analysis, we advise investors the investment view as follows:

• Short-term investment activity: keep holding stocks, can consider increasing the stock proportion in the corrections if the VN-Index does not fall below 565 pts

• Mid and long term investment activity: Maintain the current portfolio, can consider increasing the stock proportion in the corrections.