Vietnam Insight

The market is optimistic thanks to Trump’s pro-growth policies and a positive economic outlook. In regular trading on Thursday, the Dow jumped 0.92%, the S&P 500 climbed 0.53% and the Nasdaq Composite added 0.22%. Investor sentiment was lifted by President Trump’s virtual address to the World Economic Forum, where he called for immediate interest rate cuts and urged Saudi Arabia to lower oil prices. Optimism surrounding Trump’s pro-growth policies and a buoyant economic outlook also helped the rally.

Short term sideways trend. VNINDEX closed at 1,259.63 points, up 17.1 points (+1.38%) with trading volume at the 20-day average. The blue-chip group led the upward trend, especially banking and securities stocks. VN-Index experienced a strong upward movement, closing at a recent high for the session and reclaiming the 50-day EMA. Although trading volume remains low, there has been a significant improvement, and buying interest has shown willingness to enter the accumulation zone of 1240-1250. In the upcoming sessions, the VN-Index is likely to experience some fluctuations as it moves towards the resistance zone of 1270-1280.

Trading Strategy: The market is following the main sideway trading trend. For short-term trading, investors can consider disbursing around this area and gradually taking profits when approaching 1,300 points. With a holding strategy, investors will only disburse strongly when the VN-Index breaks out and successfully defends the 1,300 point level.