Along with China and Asian countries celebrating the Lunar New Year, the Vietnam market has been closed since February 8th.
The HOSE (Ho Chi Minh Stock Exchange) opens again this Thursday the 15th.
Since 2024 began, the index VN is up around 6%.
The ETF we trade in the US, VNM, is up about the same amount.
However, the chart of VNM is range bound with a potential huge breakout on the horizon.
Looking at the chart more closely, VNM has cleared the 50-DMA and is in a recovery phase.
The January 6-month calendar range highs sits just above current price at 13.19.
The Leadership indicator shows VNM underperforming the SPY yet playing some catch up.
The Real Motion indicator is sitting right on its 50-DMA, which means momentum is gaining but needs to do more to match the price.
I have been keen on this emerging market since 2023 began.
In that time, VNM traded up to over 15.00 and has since sold off into this area of huge support while trading rangebound.
Watch for VNM to clear the calendar range, and more importantly, to close the week out above 13.20.
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.