Market Vectors Vietnam ETF (VNM) has indicated the beginning of a new trend as it breaks out of a bottom Symmetrical Triangle consolidation pattern.
Vietnam ETF (VNM) Chart Analysis
The measuring objective of the triangle indicates a possible move of $4.21 from the breakout of $26.61 on Friday, giving an objective of $30.82. Friday’s breakout also confirmed a move through the 38.2% Fibonacci retracement of the larger downtrend measure from the October 2009 high.
The breakout however was not confirmed by volume, which was below the previous two days, however volume was slightly above the 50 period moving average.
Near term resistance of importance is at $27.74, the top of the triangle, and also the area of the 50% Fibonacci retracement level. After that the next resistance area is around $28.80, previous price resistance and the area of the 61.8% Fibonacci retracement level. (www.etf-portfolios.com)
