Vietnam Insight

▶ The market experienced an upward-moving session and even surpassed the 1,280 threshold in the morning session; but somehow retreated in the afternoon and only closed with a 5-point increase. The transaction value decreased slightly compared to yesterday, but was still higher than the 20-session average. Foreign investors narrowed their net selling momentum, which was a factor supporting the green color of the market.

▶ At the end of the trading session, VN-Index increased by 5.42 points (+0.43%), reaching 1,278.14 points; HNX-Index increased by 2.65 points (+1.14%), reaching 235.84 points. Market liquidity reached 16.50 trillion VND, which was equivalent to about 863.09 million shares traded. Foreign investors narrowed their net selling scale with a value of 154 billion VND, mainly focusing on MWG, GMD and VNM.

▶ Technical perspective: The market managed to maintain its movement within a narrow range with liquidity seeing no significant change when approaching the technical resistance zone around 1,280 points. This is an important resistance level as VN-Index has continuously failed many times in its effort to surpass in 2024. In the upcoming sessions, VN-Index will likely continue to fluctuate within the 1,275 - 1,280 points area to absorb supply force and confirm a clearer upward trend.

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.