Vietnam Insight

▶ In Wednesday's trading session, the market continued the downward trend in the morning session when the selling side continuously dominated. However, the market quickly reversed when the cash stream began to flow into Large cap stocks such as banking and real estate, helping to spread the green across the market. Investors' sentiment remained cautious after many sessions of decline, with market volume lower than the 20-session average.

▶ At the end of the trading session, the VN-Index increased by 4.07 points (+0.33%), reaching 1,251.02 points; the HNX-Index increased by 0.89 points (+0.89%), reaching 221.87 points. Market volume reached VND 10.2 trillion, equivalent to about 445.8 million shares traded. Foreign investors were net sold of VND 445.84 billion, mainly in FPT, STB, VTP.

▶ Technical perspective: Bottom-fishing buying pressure appeared around the 1,240-point area, helping the VN-Index increase by more than 8 points in the afternoon session. The candlestick with a short leg shows the positive appearance of buyers around the EMA200 support area. On the 1-hour chart, trading volume improved well in the afternoon session. On the weekly chart, VN-Index is forming an ascending triangle pattern, with the following bottom higher than the previous bottom and the fluctuation range gradually narrowing as it approaches the old peak of 1,300 points. Technical signals on all 3 time frames (hourly, daily and weekly) are supporting the recovery of VN-Index's upward momentum.

In a more negative scenario, on the daily chart, VN-Index continues to lose the EMA200 with strong selling pressure and a wide candle body, this development sends a signal that the downtrend is still dominant.

Strategy: The market is still trading in a sideways trend. Short-term trading strategy (stock weight around 50%) is still prioritized until the uptrend is confirmed and VN-Index surpasses 1,300 points. The strong support and resistance levels are currently at 1,200 points and 1,300 points, respectively.