Vietnam Insight

▶ The market successfully recovered the loss in the previous session with a consensus increase in many industry groups. Trading value increased and exceeded the 20-session average, showing an improvement in market sentiment. Foreign investors maintained their net selling momentum although the net selling value decreased compared to yesterday.

▶ At the end of the trading session, the VN-Index increased by 11.65 points (+0.93%), reaching 1,264.68 points; the HNX-Index increased by 3.12 points (+1.4%), reaching 226.61 points. Market liquidity reached VND 16.98 trillion, equivalent to about 776.17 million shares being traded. Foreign investors continued to net sell VND 955 billion, mainly focusing on VNM, LPV and FPT.

▶ Technical perspective: VN-Index ended the session with a green marubozu candle, denying the previous decline, accompanied by improved liquidity. Increased liquidity showed that the buying force was relatively active when retesting the support zone of 1,250 points. The MACD indicator keeps a positive reversal signal below the zero line, indicating that VN-Index is still moving in a recovery trend. In the following sessions, VN-Index may fluctuate when it approaches the resistance of 1,275 points. 

In a positive scenario, VN-Index will establish a green candle with a wide body in the following sessions, confirm the control of the buying side and move towards retesting the old peak of 1,300. In a more negative scenario, VN-Index will continue to decrease sharply with a wide body candle, losing the uptrend on both daily and weekly charts; then the next support will be the 1,180 - 1,200 point zone. 

Strategy: The market is following the sideways trend. For short-term trading strategy, investors should consider disbursing around the 1,240 point area and gradually taking profits when the index approachs 1,300 points. With a buy-and-hold strategy, investors should disburse strongly when the VN-Index breaks out and successfully upholds the 1,300 point area.