Vietnam Insight

▶ On Thursday's trading session, the market suddenly closed in the green when the market was under strong selling pressure in the afternoon session. Trading volume recorded at a 20-day average.

▶ At the end of the trading session, VN-Index increased 5.78 points (+0.46%), reaching 1,274.44 points; HNX-Index increased 1.59 points (+0.66%), reaching 242.49 points. Market volume reached VND 19.12 trillion, equivalent to about 739 million shares traded. Foreign investors were net purchase of VND 974 billion, focusing mainly on HDB, STB, and SAB.

▶ Technical perspective: The market reacted completely opposite to the previous session, when the market spent most of the time in the red but buying force suddenly appeared at the end of the session to help VN-Index increase again. Reduced volume after an eventful session is a common occurrence in the market. Buyers only appear when the market returns to the 1,260 point area. It is expected that 1,250-1,260 will be an important support zone for VN-Index in the short term. In the following sessions, the market reaction will determine the trend for the rest of the year. If the buying force is strong enough to absorb the selling force in the 1,250-1,260 point area, the uptrend of VN-Index will still be the dominant trend. VN-Index ended the session above EMA50 with a Hammer candle, which was a positive point for the market.

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.