Vietnam Insight

▶ The market opened the trading session with a increase gap of 6.29 points. Strong selling pressure from foreign investors in the morning session pushed the VN-Index below the reference level. Foreign net selling momentum stopped in the afternoon session, helping the VN-Index regain the reference level. The index closed at the session's highest level and approached the important resistance level of 1,700. 

▶ At the end of the trading session, the VN-Index increased by 14.99 points (+0.89%), reaching 1,696.29 points; the HNX-Index increased by 1.29 points (+0.46%), reaching 283.99 points. Market liquidity continued to decline below the 20-session average to VND 43.8 trillion, equivalent to about 1,567 million shares traded. Foreign investors continued to maintain net selling of VND 790 billion during the session, mostly concentrated in VPB, VHM and MSN. On the other hand, HPG, MSB and FPT were the stocks that foreign investors bought the most.

▶ Technical perspective: VN-Index continues to maintain its upward momentum, approaching the 1,700-point zone with relatively high liquidity. In general, VN-Index still maintains its upward trend when the index moves closely to the MA20 support lines. Foreign investors narrow their net selling momentum and return to strong net buying. HPG is a bright spot in the market. The RSI indicator is about to enter the overbought zone, indicating the possibility of a market correction is possible.

The nearest support level is at 1,640 points and further at 1,540 points, corresponding to MA 20 and MA 50. Investors need to manage risks in case VN-Index breaks these two levels.

In the positive case: After re-testing the 1,640-point zone corresponding to MA 20, the market continues to increase towards 1,750 points.

In the base case: The market tends to move sideways and accumulate at the 1,640 point mark corresponding to MA 20. If this mark is broken, the market will likely test the 1,540 mark at MA 50.

Strategy: Prioritize the holding strategy and be ready to sell when the target is reached. For short-term traders, if the market corrects to around 1,640 points and rebounds, they can consider disbursing a low proportion. If the market returns to the 1,540 point area, there will be a clearer buying opportunity for medium-term positions. Investors can disburse more heavily, focusing on groups of stocks with many driving forces such as benefiting from upgrades, strong business results; or lower valuation levels compared to the general market.