Vietnam Insight

▶ On Tuesday’s trading session, the market was in red since the beginning of the session and closed below the reference price. Foreign investors return to net buy, though with an insignificant value. Trading volume improved but remained low. 

▶ At the end of the trading session, VN-Index decreased by 2.40 points (-0.19%), reaching 1,260.36 points; HNX-Index decreased by 0.15 points (-0.07%), reaching 228.36 points. Market liquidity reached VND 18.31 trillion, which was equivalent to about 774.22 million shares being traded. Foreign investors net bought VND 44.4 billion, mainly concentrated in SSI, MWG, STB.

▶ Technical perspective: The market has created a candlestick and later withdrew its leg, showing that demand was ready to participate at the 1,250 zone. Improved liquidity and higher than the 20-session average also indicated a good signal. MACD has shown signs of cutting down the signal line, indicating weak price momentum in the short term. The market seems to be only ready to participate at low levels and investors quickly take profits, making it difficult for the market to maintain a sustainable trend and surpass 1,300 at the present. In addition, cash flow seemed to look for small groups of stocks with their own stories. 

Strategy: Short-term investors should pay attention to the two important support and resistance levels of 1,200 - 1,300. They could increase their purchases, but should not exceed 50% of the amount of stocks being held and prioritize short-term trading strategies. Do not participate in too many market-sensitive stocks when VN-Index has not yet reacted clearly at the two support and resistance levels above.