Vietnam Insight

▶ The market opened with a Gap-up but failed to maintain the momentum and ended the session in red. The decrease in transaction value was indicative of investors' apprehension as the index was approaching the upper resistance zone. Foreign investors continued their net selling streak and have not changed the trend yet.

▶ At the end of the trading session, VN-Index decreased by 1.54 points (-0.12%), reaching 1,266.91 points; HNX-Index moved in the opposite direction with an increase of 0.45 points (+0.2%), reaching 229.32 points. Market liquidity only reached 12.69 trillion VND, which was equivalent to about 610.03 million shares being traded. Foreign investors continued to net sell 409 billion VND, mainly focusing on MWG, HPG and VHM.

▶ Technical perspective: VN-Index continued to trade sideways with the cash flow rotating among sectors. The decrease in liquidity compared to yesterday's session indicated that the selling pressure has somewhat cooled down. The short-term trend is still considered positive when the MACD line still maintains a positive reversal signal above the zero line. In a positive scenario, the index will need sometimes for re-accumulation.

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.