VIETNAM VN INDEX

Vietnam equities are showing strength. Massive multi-year base formation may be close to completion. Vietnam’s VN Index is testing 640 levels for the third time since 2009. Breakout above 640 will be very positive and can push the index towards 1,000-1,100 area.

Another form of base formation can be seen on the VIETNAM Market Vector ETF that trades in NYSE (VNM). The ETF is forming a possible complex head and shoulder bottom with the strong resistance at 19.7 levels. Breakout above 19.70 will confirm the H&S bottom on VNM.

Both charts suggest following months and year can be positive for Vietnam equities.