Vietnam Insight

▶ The market continued to show rising efforts in the Wednesday trading session, led by the recovery of some individual banking stocks. Despite lower transaction value compared to yesterday, it was still higher than 20-session average. Foreign investors reduced their selling value, which played a certain role in fortifying the market's gain.

▶ At the end of the trading session, VN-Index increased by 4.93 points (+0.39%), reaching 1,269.61 points; HNX-Index increased by 1.37 points (+0.61%), reaching 227.98 points. Market liquidity reached 14.89 trillion VND, which was equivalent to about 681.88 million shares being traded. Foreign investors went on their net-selling streak with 365 billion VND in value, mainly focused on SSI, CTG and FRT.

▶ Technical perspective: VN-Index opened the session with a gap up and maintained its upward momentum throughout the day. Trading liquidity was at an average level, which was indicative of gradually stable demand. In the short-term, the market has approached the resistance zone of 1275 - 1280. VN-Index is likely to experience fluctuations at the resistance zone of 1280 as selling pressure in this zone has been relatively strong in many previous tests.

In a positive scenario, VN-Index will establish a green candle with a wide body in the following sessions, confirming 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.