[Market News 08/09/2023] RESISTANCE IS STILL RESISTANCE UNTIL IT IS BROKEN

– Foreign investors continue their net selling streak. We believe the net selling trend by foreign investors will persist for two reasons:

(1) The global stock market is showing signs of continued downward correction in September 2023.

(2) The USD/VND exchange rate is still on an upward trend.

– The negative divergence pattern between price and RSI(14) with two peaks is also a negative point for the index at this time. However, there are three bright spots that suggest this pattern might fail:

(1) Trading volume remains high. According to theory, the volume at the second peak is usually low.

(2) The breadth of individual stock breakouts in the market is trending higher.

(3) Historically, visits by the US President often help boost the market.

– However, resistance remains resistance until it is broken, which is a principle of technical analysis. Therefore, maintaining a cautious mindset is essential.

– Index forecast for September 8, 2023: Statistics show the index trading in a tug-of-war between gains and losses.

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SOURCE: AAS RESEARCH