[Market News 29/08/2024] FOCUS IS ON DIG

Some important notes:

– The VN-Index is facing a resistance line connecting the two peaks of 12/06/2024 and 09/07/2024. The appearance of a red corrective candle in this area is understandable. Additionally, the VN-Index still has a price gap from 19/08/2024 that has not been filled, so we believe that the index may experience a correction to fill this price gap, which is a common occurrence. Basically, a cup-and-handle pattern could form on a weekly basis. This aligns with the re-accumulation cycle following the market’s V-shaped recovery.

– The recent weak trading of the index has caused many investors to worry. Comparing it to Fake out or Break out patterns, we see that a slight correction before resistance resembles a Break out accumulation model rather than a Fake out. Therefore, we should probably continue to observe, with the probability of a Break out still being higher at this time.

– Regarding cash flow, the real estate group experienced a sell-off today, originating from DIG after information concluded on violations during the equitization and divestment of state capital in this stock. Fundamentally, the violations in the inspection report are not overly significant, but generally, they still affect this stock. We often look at corporate governance issues before evaluating financial factors, and we observe that in Vietnam, generational transitions often cause businesses to face difficulties for a long period. Therefore, we remain cautious in observing DIG and will typically remove it from our watchlist for medium-term investment until the concerns are clarified.

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SOURCE: AAS RESEARCH

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