Vietnam Insight

▶ In Wednesday's trading session, the market continued to decline and lost the 1,200 mark in the morning session. Foreign investors continued to net sell at a high level. However, strong bottom-fishing demand helped the trend reverse quickly in the afternoon session, helping the market spread green. As a result, trading volume increased sharply, exceeding the 20-session average.

▶ At the end of the trading session, the VN-Index increased by 11.39 points (+0.95%), reaching 1,216.54 points; the HNX-Index increased by 1.61 points (+0.73%), reaching 221.29 points. Market volume reached VND 17.8 trillion, equivalent to about 767.5 million shares traded. Foreign investors were net sold of VND 1,217.82 billion, focusing on VHM, FPT, MSB.

▶ Technical perspective: The market has a positive reaction at the important support zone of 1,200, and is trying to maintain the long-term price increase channel from May 2024 to present. However, the index is still below the EMA 200 and the MACD has not shown signs of cutting up the signal line, indicating that the price momentum is not strong enough. The market needs more sessions to accumulate here. The reference support and resistance levels are 1200 and 1,260 respectively.

Strategy: Investors should continue observing and wait for the market to determine a recovery trend at the support level. If the MACD cuts above the signal line and forms a strong bullish candlestick pattern, it will open up a new disbursement opportunity. Investors should choose stocks with a good accumulation base but still maintain a moderate proportion in the portfolio.