Vietnam Insight

▶ The market mainly experienced sideways movements as it was approaching the resistance zone in today session, with the highlights are some individual stocks in the Banking and Sea port sectors. Transaction value hardly changed and stayed higher than the 20-session average. Foreign investors continued their net-selling streak, although with a smaller value.

▶ At the end of the trading session, VN-Index increased by 1.87 points (+0.15%), reaching 1,271.48 points; HNX-Index increased by 1.14 points (+0.5%), reaching 229.13 points. Market liquidity reached VND 14.53 trillion, which was equivalent to about 668.22 million shares being traded. Foreign investors’ net-selling value was VND 345 billion, mainly focusing on VNM, FRT and MWG.

▶ Technical perspective: VN-Index opened the trading session with a second consecutive Gap-up, however, the market quickly saw a slight selling pressure when entering the resistance zone of 1275. VN-Index closed with a Doji candlestick, showing investors' caution when approaching a strong resistance zone. With relatively weak cash flow, the index is likely to form fluctuations around the resistance zone of 1280 in the following sessions after many previous failed 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.