Vietnam has now officially lost all of its year-to-date gains. The Market Vectors Vietnam ETF was up a quick 30% to start 2013. And since then, it has slowly been giving it all away. Yesterday, the ETF closed at new lows for the year and took out all of the previous support.
Today’s chart shows the daily bars for $VNM –
I think the support levels here are pretty clear. The July lows were right around 18.10, but the 18 and change level was successfully tested 4 times, before ultimately breaking down this week. I think that as long as prices remain below those levels, Vietnam should stay under pressure.
Volume expanded on the recent break, helping to add fuel to the fire. And when it comes to momentum, as you can see in the chart above, there is still plenty of downside left before reaching any extreme oversold readings. The fact that RSI has failed for several months to stay above 50 is another negative for this security.
With a lot of the Asia Pacific stocks taking a beating lately, I wouldn’t be surprised if this was the next one to get hit hard. Keep an eye on this Ho Chi Minh Stock Index…