Vietnam Insight

▶ The market experienced a losing-point session at the beginning of the week. The transaction value increased slightly with selling pressure mainly appearing in the afternoon. Foreign investors continued their net selling streak with an increased value compared to the previous session.

▶ At the end of the trading session, VN-Index decreased by 3.36 points (-0.26%), reaching 1,272.72 points; HNX-Index had a mixed performance when it increased by 1.97 points (+0.85%), reaching 232.47 points. Market liquidity reached VND 20.29 trillion, which was equivalent to about 1.23 billion shares being traded. Foreign investors net sold VND 601 billion, mainly concentrated in MWG, VNM and HDB.

▶ Technical perspective: The market moved sluggishly in the morning session when approaching 1,280, unfortunately, selling pressure appeared in the afternoon session in all industry groups caused the index to close in red. As a result, VN-Index one more time failed when testing the resistance level of 1,280, high liquidity showed that the supply force was still significant. MACD still maintains a positive signal, indicating that the situation is not too negative. The current narrow sideway zone will act as an absorption force around the resistance zone of 1,275 - 1,280 before the cash flow factor confirms the positive return.

In a positive scenario, VN-Index will form a green candle with a wide body in the following sessions, indicating the control of the buyers and pushing VN-Index towards testing the old peak of 1,300.

In a more negative scenario, VN-Index will continue to decrease sharply with a wide body, losing the uptrend on both daily and weekly charts. The next support will then 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 VNIndex breaks out and successfully upholds the 1,300 point area.