Vietnam Insight

▶ On Wednesday's trading session, the banking and securities stocks attracted cash stream with large trading volume, helping to spread the green vibe across the market. However, profit-taking pressure and the fear of market reversal caused the market to correct and return to near the 1,300 psychological level. Trading liquidity remained higher than the 20-day average.

▶ At the end of the trading session, the VN-Index decreased by 7.20 points (-0.55%), reaching 1,304.71 points; the HNX-Index decreased by 1.94 points (-0.82%), reaching 235.41 points. Market liquidity reached VND 22.2 trillion, equivalent to about 979.9 million shares traded. Foreign investors were net sold of VND351.6 billion, mainly in GMD, HPG, VIB.

▶ Technical perspective: The VN-Index initiated trading with robust upward momentum, briefly breaching the 1,319 resistance level. However, a significant surge in profit-taking activity at this juncture overwhelmed buying interest. This resistance zone, near the psychological 1,320 level, witnessed a lack of sustained follow-through from sidelined buyers, indicating potential weakening momentum. This price action, contrasting sharply with the previous session's inverse behavior, suggests a shift towards a consolidation phase. The market appears to be establishing a trading range around this level, potentially preceding a resumption of the prevailing uptrend.

Strategy: The market is following the main sideway trading trend. For short-term trading, investors can consider disbursing when VN-Index shows a correction around 1,280-1,300. With a holding strategy, investors can disburse more when VN-Index breaks out and successfully defends the 1,300 point zone.