Vietnam Insight

▶ VN-Index struggle to gain and ended a four consecutive recovery streak as the market lack of fresh catalyst. Investors show a sign of cautiousness as the market approach the old peak at 1,300.

▶ At the end of the trading session, VN-Index closed at 1,282, ticked down by 0.1% while HNX flatted at 238 points. The trading value was tumbled to VND15,606 billion. Meanwhile, foreign investors took net selling day with the value at VND546 billion on the HOSE. In particular, the duo from steel industry HPG (-VND245 billion) and HSG (-VND121 billion) with VPB (-VND50 billion) were the top sold tickers.

▶ Technical perspective: The market opened in green, however, the selling pressure erased all the gain and drag the VN-Index down. The market traded around 1280 - 1290, with lower turnovers after 4 consecutive rally session and no sign of distribution. With the recent strong increase, the appearance of a correction session like today is relatively understandable. Currently, the market does not have enough signals to form a new wave. We expect the market to accumulate in the coming time so that the next phase can cross over the peak more convincingly. The support and resistance are 1,230 and 1,300, respectively.

Strategy: Investors wait for corrections and rebounds at the support zone of 1,240 - 1,250 to enter the market. Selling pressure at 1,280 begins to appear as the price increases, so it is recommended that investors do not chase the price.