Vietnam Insight

▶ In the trading session on Tuesday, the market was still not optimistic when the red vibe still spread over most stock groups. Investors were cautious and waiting for clearer recovery signals from the market. Trading volume decreased compared to the previous session but remained at the average level of 20 sessions.

▶ At the end of the trading session, the VN-Index decreased by 5.50 points (-0.44%), reaching 1,244.82 points; the HNX-Index decreased by 0.17 points (-0.07%), reaching 226.69 points. Market liquidity reached VND 14.2 trillion, equivalent to about 600.7 million shares traded. Foreign investors were net sold of VND 609.42 billion, focusing on TCB, PVD, VHM.

▶ Technical perspective: Following the momentum from the previous bottom-fishing buying force, VN-Index started the trading session with a slight increase. However, when approaching the short-term resistance level of EMA20, the sellers appeared and the tug-of-war situation took place for the rest of the trading session. VN-Index is likely to continue moving sideways around 1,240-1,270 points in the coming time. In order to break out, the VN-Index's upward momentum needs to be accompanied by improved liquidity. In the negative case, if the VN-Index loses the EMA200 with a wide candle body, the VN-Index will return to a downtrend and retest the 1,200-1,220 zone.

Strategy: Investors should maintain an observation state and wait for the market to determine a short-term uptrend. Investors can wait to buy when the market rises above 1,270. If the VN-Index fails to attract cash flow from buyers and loses the EMA200, investors should reduce the proportion of stocks to manage risks.