Vietnam Insight

▶ On Wednesday's trading session, the market maintained a sideways movement with low liquidity in the morning session. However, increased selling pressure from Technology stocks at the end of the session caused the market to suddenly drop to the surprise of many investors.

▶ At the end of the trading session, VN-Index decreased 12.52 points (-0.98%), reaching 1,268.66 points; HNX-Index decreased 4.01 points (-1.64%), reaching 240.90 points. Market volume reached VND 29.33 trillion, equivalent to about 1,225.4 million shares traded. Foreign investors were net purchase of VND 523.8 billion, focusing mainly on MWG, FPT, and VCB.

▶ Technical perspective: The market was excited in the morning session with the leading momentum of the banking group. But the selling force suddenly appeared about 1 hour before the market closed, causing the VN-Index to fall more than 12 points. Volume increased sharply during the down session, showing that selling pressure appeared and was dominating. Again, VN-Index could not break through the 1,300 level; and lost EMA20 and EMA50 at the same time. Buying force poured in strongly on the 1-hour market when VN-Index dropped to 1,256 points, this will be an important support area for the index. In the short term, the market may struggle in the range of 1,250 -1,260 points before returning to upward momentum.

Strategy: Short trading investors can consider lowering the stock proportion to ensure safety and wait for a buy signal when the VN-Index returns to EMA50. With the strategy of holding according to the trend, investors can continue to hold and wait for a complete break of 1,300 to increase their proportion.