Vietnam Insight

▶ In Tuesday's trading session, the market was positive at the beginning of the session thanks to cash flow into banking stocks, helping to spread green to many other industry groups. However, the selling pressure quickly reversed the market and closed at the reference level. Market volume continued to trade at the 20-session average.

▶ At the end of the trading session, the VN-Index increased by 0.6 points (+0.05%), reaching 1,246.95 points; the HNX-Index decreased by 1.97 points (-0.88%), reaching 220.98 points. Market volume reached VND 13.2 trillion, equivalent to about 560.1 million shares traded. Foreign investors were net sold of VND 92 billion, mainly in VNM, NLG, SSI.

▶ Technical perspective: After 2 consecutive declines, VN-Index slowed down around the EMA200 support zone. The Doji candlestick pattern with a small candle body and volume around the average level shows the balance of both buyers and sellers around the important support area. Investors will have to continue waiting for clearer confirmation signals from the market in the following trading sessions. In the coming time, investors can use a smaller chart frame (1h frame) to more clearly observe the appearance of buying or selling force in this area. If VN-Index reacts negatively at the EMA200 area and loses this area with a rapid and strong decrease during the session, the index is expected to return to test 1,200-1,230 points. On the contrary, if it continues to successfully hold this area, VN-Index will attract more buyers and return to test the 1,300 point area (on the weekly chart frame, VN-Index is still above EMA50).

Strategy: Investors can consider reducing positions in stocks that violate technical signals. In the short term, the sideways trend is still being maintained. Short-term trading strategies are still prioritized and it is necessary to consider the two support and resistance levels of 1,200 and 1,300.