Vietnam Insight

▶ The stock market fluctuated within a narrow range during Tuesday's trading session and closed with a slight decrease. Foreign investors continued their net selling position, though with little volume. Market liquidity continued to decline and was approximately at the average level of the last 20 sessions.

▶ At the end of the trading session, VN-Index decreased by 1.77 points (-0.14%), closing at 1,272.07 points; HNX-Index increased by 0.03 points (+0.01%), reaching 229.24 points. Market liquidity reached VND16.37 trillion, which was equivalent to about 730.14 million shares traded. Foreign investors net sold VND131.81 billion, mainly concentrated in MWG, KDC and VNM.

▶ Technical perspective: VN-Index adjusted slightly, closing at 1,272 points and forming the third consecutive Doji candle around 1,270. The market moved sideways and had some fluctuations during the session, however, the selling pressure during the session was not too strong. Overall, the market movement is still stable, VN-Index is currently slowing down after the previous strong increase and is looking for a balance zone. In the base case, VN-Index needs to form an absorption zone with a narrow fluctuation zone and mild liquidity before entering the strong resistance zone of 1,290 - 1,300. 

Strategy: Many stocks have reached the target profit-taking threshold, short-term investors can sell a part, and take profit of the remaining part when Vn-Index reaches 1,300. Investors can increase their stock proportions but should not exceed 50% of the stocks they are holding. And they should refrain from buying new stocks until the index surpasses 1,300 or successfully retests the 1,200 - 1,220 zone.