Mish’s Daily: Vietnam has a Compelling Technical Pattern

4 months ago 209 views 4 min read

Michele “Mish” Schneider

Director of Trading and Education

MarketGauge.com

Mish’s Daily: Vietnam has a Compelling Technical Pattern

Written by Michele ‘Mish’ Schneider

In 2023, one of our best callouts and profitable swing trade, was buying the Vietnam ETF (VNM) on the lows and riding it to its peak in September 2023.

We did a hold a tail though into the correction and finally exited in January 2024.

We have been aside since.

With the huge sell-off in equities, we revisit trades that trended well and that still have a fundamental story consistent with why we did the original trade.

Have a 1-minute listen to this guy talking VNM GDP at 6%!

https://video.search.yahoo.com/search/video?fr=mcafee&p=vietnam+news&type=E210US739G0#id=24&vid=a212ea03bbe671d4a68a4b505e35a962&action=view

However, like always, the charts say all,

One of my favorite patterns is the Island Bottom.

However, I like to see an Island bottom pattern confirm on a second day.

Note the island bottom with the gap down to start the week, followed by the gap up on Tuesday.

The Leadership indicator shows VNM outperforming the SPY.

Yet, why we want a wee bit more patience is because our momentum indicator or Real Motion, has yet to see the red dots clear back over the Bollinger band.

That would be a mean reversion signal if that happens tomorrow.

If you are wondering about risk, should VNM confirm the island bottom, (gap must hold), the risk is to under Monday’s lows OR- If you are more conservative, you do not want to see the gap filled thereby can use the highs from Monday as your guide.

To find out more about calendar ranges, momentum and leadership indicators, please contact Rob Quinn, our Chief Strategy Consultant,

Educational purposes only, not official trading advice.

For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.