Vietnam Insight

Waiting for the release of the PCE index on Friday. On Monday, the S&P 500 and Nasdaq Composite dropped 0.5% and 1.21%, respectively, marking their third consecutive day of losses. In contrast, the Dow Jones edged up by 0.08%. Traders are also watching Friday’s release of the personal consumption expenditures (PCE) index, the Fed’s preferred inflation gauge, which could shape expectations for rate cuts. Despite recent volatility, investors are weighing whether the Fed’s stance on rates will provide a floor for the market in the months ahead.

The VN-Index surpassed the 1300-point resistance level. VNINDEX closed at 1,304.56 (+7.81 points, +0.6%) with higher liquidity compared to the 20-session average. 1  The significantly increased liquidity along with the positive MACD indicator shows strong buying demand that helped the index surpass the 1300 resistance. In a positive scenario, if the cash flow increases and selling pressure does not build up too strongly, the market is expected to continue rising

Trading Strategy: The market is trending with a primarily upward sideways trading pattern. For short-term trading, investors might consider buying when the VN-Index experiences a correction around 1270 and taking profits when the market trades with euphoria above the 1300 level. For a buy-and-hold strategy, investors could add to their positions when the VN-Index successfully breaks above and holds the 1,300-point range

Buy Recommendation: ORS