The VN-Index fell 2.2% yesterday with a relatively strong trading volume, closing below the 200-day moving average at 15,650 after surpassing this strong resistance level in just one session.
This has formed a bearish engulfing pattern on the technical chart. It is recommended to take profit and close short positions on VND.
On May 15th, the Prime Minister officially approved the National Power Development Plan for the period of 2021-2030 with a vision to 2050 (Power Plan VIII). Previously, in the document submitted to the Prime Minister on May 10th, Power Plan VIII predicted that the national average electricity consumption growth rate would be 9% during the period of 2021-2030 and 3%-6% during the period of 2031-2050 to meet the GDP growth rate of around 7%/year during 2021-2030 and around 6.5-7.5%/year during 2031-2050.
Power Plan VIII also forecasts that the total installed capacity nationwide will reach 158 GW and 573 GW by 2030 and 2050, respectively, with solar power capacity targets of 20.6 GW and 189.3 GW by 2030 and 2050 and wind power capacity targets of 27.9 GW and 168 GW by 2030 and 2050. According to Vietcap’s Analysis Department, the approval of Power Plan VIII will benefit renewable energy stocks such as PVS, HDG, REE, PC1, and GEG.
According to the Vietcap securities JSC (VCSC), the F2305 index gained points in the morning session but lost momentum towards the end of the day, closing near support at 1065 points.
It is predicted that the F2305 index may test support at 1061-1065 points before recovering.
Trading Strategy advised by VCSC:
- Wait to Buy (B) at 1061 points
- Target Price (TP): 1071 points
- Stop Loss (SL): 1059 points.
That’s it for today’s Trading View. Stay tuned with Vietnam Insider for more updates on the financial market.