Vietnam Insight

▶ Tuesday's trading session stayed in red since the opening. The sharp drop in liquidity showed the indifference of cash flow, while foreign investors increased their net selling volume.

▶ At the end of the trading session, VN-Index decreased by -6.58 points (-0.53%), reaching 1,229.07 points; HNX-Index decreased by -1.35 points (-0.61%), reaching 218.27 points. Market liquidity reached VND9.39 trillion, which was equivalent to about 436.10 million shares being traded. Foreign investors net sold VND629.88 billion, mainly concentrated in FPT, VPB and MSN.

▶ Technical perspective: After a positive recovery session, market liquidity decreased along with small fluctuations of the VN-Index throughout the trading session. Investors need to observe the market's reaction in Wednesday’s afternoon this weekend, as this is the time when stocks bought in the recovery session are credited to buyers’ accounts, meaning they are able to sell them. In a positive scenario, the VN-Index will recover from the support zone around 1,220 to test the old peak of 1,300. In a more negative scenario, VN-Index will continue to decline sharply with a long red candle, losing the uptrend on both daily and weekly charts. The next support will then be around 1,180-1,200 point zone. 

Strategy: The market is showing positive signals as it approaches 1,200-1,220 points. If trading short-term, investors can consider disbursing around this zone and gradually taking profits when the index return to 1,300 point zone. For a long-term holding strategy, investors should only disburse strongly when VN-Index breaks out and successfully upholds the 1,300 point zone.