Vietnam Insight

▶ The market opened at a low price and made a managed to form a slight recovery in today's trading session. The transaction value remained at a relatively good level. Foreign investors continued their net selling streak and this trend has not changed.

▶ At the end of the trading session, VN-Index increased by 5.19 points (+0.41%), reaching 1,268.45 points; HNX-Index increased by 0.9 points (+0.39%), reaching 228.87 points. Market liquidity reached VND 15.80 trillion, which was equivalent to about 747.05 million shares being traded. Foreign investors continued to net sell VND 581 billion, mainly focusing on MWG, VNM and SSI.

▶ Technical perspective: VN-Index traded in a narrow range after failing to test the 1,275-point zone. Liquidity decreased compared to yesterday's session, showing that the trading activity slowed down after a large-range adjustment session like yesterday. Today’s recovery did not have much meaning in confirming that VN-Index had ended its decline. However, the short-term trend is still considered positive when the MACD line still maintains a positive reversal signal above the zero line and the index will need time to re-accumulate.

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.