Vietnam Insight

▶ The market adjusted sharply since the beginning of the first trading session of the week with strong selling pressure from the Steel sector after the news about import tax. The matched order value increased tremendously, especially in the VN30 group. Foreign investors continued their net selling streak and this trend has not changed so far.

▶ At the end of the trading session, VN-Index decreased by 11.94 points (-0.94%), reaching 1,263.26 points; HNX-Index decreased by 1.52 points (-0.66%), reaching 227.97 points. Market liquidity reached VND 21.03 trillion, which was equivalent to about 925.16 million shares being traded. Foreign investors continued to net sell VND 442 billion, mainly focusing on HPG, MWG and VCB.

▶ Technical perspective: VN-Index showed selling pressure right from the beginning of the session and the index kept decreasing throughout the session. At the end of the day, the market closed with a Bearish Engulfing candle along with increased liquidity, indicating a large increase in selling pressure. However, the short-term trend is still considered positive when the MACD line still maintains a positive reversal signal above the zero line. After facing pressure at the upper resistance zone and failed to break, VN-index will likely retest the lower support zone at 1250 - 1255. 

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.