Vietnam Insight

U.S. stocks are concerned about unfavorable signals. On Thursday, the Dow and S&P 500 posted losses of 0.45% and 1.59%, respectively, marking their lowest levels in six weeks.  Sentiment was further dampened by news that former President Trump confirmed the imposition of 25% tariffs on European automobiles, along with new levies on Mexico and Canada, set to take effect on March 4. The bearish mood was compounded by growing economic concerns, with recent economic reports signaling potential risks ahead. The US economy expanded an annualized 2.3% in Q4 2024, the slowest growth in three quarters, down from 3.1% in Q3 and in line with the advance estimate. The yield on the 10-year US Treasury note fell below the yield on the 3-month US Treasury bill in trading on February 26.

The Steel sector soared, driving the market higher. VNINDEX closed at 1,307.8 (+4.84 points, +0.37%) with higher liquidity compared to the 20-session average. Increased liquidity at the end of the session, after market fluctuations, indicates strong buying demand. In the short-term trend, the EMA 20 at 1282 plays an important support role for the trend. In a positive scenario, if the cash flow increases and the selling pressure is not too strong, the market is expected to continue to rise.

Trading Strategy: The market has surpassed an important resistance level in the short term. Investors may consider taking partial profits and holding onto the rest to let the gains run; the EMA 20 can be used as a reference for selling points. A new buying point will be suitable when the market tests the old resistance zone of 1,280 – 1,300

Buy Recommendation: DXG