Vietnam Insight

▶ On Wednesday's trading session, the market continued to decline in the morning session with the red vibe spreading in many important industry groups. However, the market gradually recovered and reversed in the afternoon session, ending with market volume approximately at the 20-day average.

▶ At the end of the trading session, VN-Index increased 6.66 points (+0.54%), reaching 1,238.47 points; HNX-Index increased 1.58 points (+0.67%), reaching 236.17 points. Market volume reached VND 17.86 trillion, equivalent to about 740.3 million shares traded. Foreign investors were net bought of VND 238.83 billion, focusing mainly on VNM, HPG, and KBC.

▶ Technical perspective: After adjusting to around EMA200, the market has recovered slightly with average volume recorded. This implies selling pressure is not increasing and buyers have shown a buying signal around this support area. VN-Index's RSI has approached the oversold area. Investors continue to observe the market at the next support area. In a positive case, VN-Index around the EMA 200 will have an increasing session with a wide margin and volume around low or around the average level. This will be an early reversal signal signaling that supply has been exhausted for investors.

Strategy: Investors continue to observe market developments at the support zone of 1,220-1,230 points, and may consider disbursing when there are signs of reversal and VN-Index returns above EMA50. With stocks that still maintain an uptrend and have a good fundamental foundation, investors can absolutely continue to hold. Investors should reduce the proportion of stocks that violate technical signals and have poor business fundamentals in the near future.