Vietnam Insight

The Fed is in no hurry to adjust interest rates. Last week, the Dow dropped 2.37%, the S&P 500 slid 3.1%, and the Nasdaq Composite tumbled 3.45%. Speaking at the US Monetary Policy Forum, Powell reaffirmed that the Fed is in no rush to adjust interest rates, citing a “solid labor market” and inflation gradually moving toward target. However, uncertainty over trade policy and economic growth persist, as President Trump announced that his reciprocal tariff package could take effect today, following a delay on Canadian and Mexican goods. Concerns about economic contraction deepened after a mixed labor report showed job growth falling short of expectations, while the unemployment rate unexpectedly rose to 4.1%.

RSI is in overbought zone. VN-Index closed the week at 1,326.05 (+20.69 points; +1.59%) with continued increased liquidity. Thus, the old resistance level of 1,300 will become a support level. During the week, the index successfully tested the 1,300 level multiple times before making a strong breakout in the last two sessions. The RSI indicator is currently above 70 and in the overbought zone, but the expected uptrend still persists. The reference resistance level is in the 1,340 – 1,350 range.

Trading Strategy: The market has shown positive signals, breaking out of the sideways trading channel. The VN-Index is likely to maintain its uptrend, heading towards 1,350 points. Investors can increase their positions during dips with average volume and a narrow spread. In a negative scenario, if the 1,280-1,300 point level is lost, investors can reduce their portfolio weight to manage risk.

Buy Recommendation: SSI, BCM