Vietnam Insight

▶ The market successfully surpassed the 1,280 resistance in Wednesday's trading session with outstanding liquidity and momentum spreading across many industry groups. Foreign investors reversed to net-buying status after a long series of tireless selling, which played as a relatively positive signal reinforcing the market's upward momentum.

▶ At the end of the trading session, VN-Index increased by 10.42 points (+0.82%), reaching 1,288.56 points; HNX-Index increased by 1.95 points (+0.83%), reaching 237.79 points. Market liquidity reached VND 20.07 trillion, which was equivalent to about 986.2 million shares being traded. Foreign investors reversed to net-buying status with VND 356 billion in value, mainly concentrated in OCB, TCH and FPT.

▶ Technical perspective: VN-Index experienced a successful test around 1,280 points with the presence of strong cash flow. The index is heading towards the 1,300 zone with increased liquidity, showing relatively strong buying force. Although the market has surpassed the resistance of 1,280; the 1,300 zone ahead is considered as a hard resistance level that the market has failed many times in its previous effort to break out. In a positive scenario, demand needs to keep escalating to support VN-index in this crucial test.

In the positive scenario, VN-Index will establish a green candle with a wide body in the following sessions, accompanied with improving liquidity in an upward direction, helping to confirm the control of the buyers and creating momentum for VN-Index to surpass the 1,300 old peak.

In a more negative scenario, VN-Index will continue to correct downward with a wide-body candle. Then the next support will be the 1,230 - 1,250 point area. This is a strong support area on both daily and weekly charts.

Strategy: The market is following the sideway-moving trend towards the upper band. If trading in the short term, investors can consider disbursing around the 1,230 - 1,250 point area and gradually take profits when the index approaches 1,300 points. For a buy-and-hold strategy, investors can increase their stock weight when VN-Index successfully breaks out and defends the 1,300 point area.