Vietnam Insight

Global markets mixed, ECB expected to cut rates. In Monday's trading session, the S&P 500 and Nasdaq Composite declined by 0.61% and 0.62%, respectively. The Dow Jones Industrial Average also slipped 0.54%, marking its third consecutive losing session. Nvidia's shares dropped 2.6% after Chinese regulators launched an investigation into potential antitrust violations. The market is also awaiting clues on whether the ECB could accelerate rate cuts to support Europe's struggling economy.

The upward momentum towards 1,300 is still maintained. The VN-Index closed at 1,273, up 3.7 points or 0.29%, with trading volume sideways compared to the 20-day average. The VN-Index showed a sideways movement as it approached the resistance level of 1280. Overall, market movements remained stable, with today's session absorbing the supply from the previous two sessions well. Average liquidity along with a positive breadth indicated that buying pressure remained good. Under the basic scenario, the VN-Index will establish a narrow sideways range before entering the strong resistance zone of 1290.

Strategy: Many stocks have reached the target profit-taking threshold, short-term investors can sell a portion, and take profit of the remaining portion when VNINDEX reaches the 1,300 zone.