Vietnam Insight

▶ VN-Index closed in red in to open the week as heading to the key resistance level of 1,280 – 1,300. Investors show a sign of cautiousness as the market approach the old peak at 1,300, however, the selling pressure remained quite weak.

▶ At the end of the trading session, VN-Index closed at 1,280, ticked down by 0.41% while HNX slightly downed to 238 points or -0.46% compared to last week. The trading value was at VND18,301 billion. Meanwhile, foreign investors took the fourth consecutive net selling day with the value at VND421 billion on the HOSE. In particular, the duo from steel industry HPG (-VND148 billion) and HSG (-VND72 billion) with VPB (-VND65 billion) were the top sold tickers.

▶ Technical perspective: The market opened slightly up more than 4 points, however, short-term profit-taking pressure appeared when VN-Index approached the 1,300-point threshold. The new cash flow was not strong enough to help VN-Index maintain green during the session, ending the session VN-Index lost more than 5 points. The MACD momentum index has shown a bearish signal in recent sessions. The index fluctuated with a small amplitude along with reduced liquidity, which is a signal showing the caution of buyers when approaching the important resistance zone. We believe that VN-Index will likely have a short-term correction and accumulate around the 1,250-1,280 zone before continuing the uptrend.

Strategy: Investors waiting for corrections and rebounds at the support zone of 1,240 - 1,250 can buy new. Selling pressure at the 1,280 area begins to appear as the price continues to rise, so investors are advised not to buy but to prioritize holding.