Investors should limit chasing high-priced stocks

After Wednesday's volatile session, VN-Index showed signs of finding a balance in today's session with ups and downs of /-10 points around the reference level. Although red still dominated, efforts in the large-cap group led by VIC, CTG, BID, and GAS helped the general index maintain the 1,650 level. Liquidity decreased by 32.45% compared to yesterday morning, showing investors' cautious sentiment in the face of strong market fluctuations recently. Some industry groups that attracted impressive cash flow in the session included oil and gas and banking.

VN-Index continued to move sideways around the reference level in the afternoon session, but the fluctuation range was somewhat narrowed compared to the morning session. Large-cap stocks in the Banking group (CTG, BID), Oil and Gas (PLX, BSR, GAS), and VIC maintained positive performance from the morning session, supporting the VN-Index.

In addition, mid-cap stocks such as Fertilizers and Chemicals (DCM, DPM, CSV) and Oil and Gas (PVD, PVT, PVS) recorded an impressive increase of over 3%, in which PVD shares hit the ceiling at times during the session. Foreign investors net sold with a total net value of VND 806.09 billion, focusing on selling TCB, VRE, and GEX.

At the end of yesterday’s session, VN-Index closed at 1654.89, up 2.91 points, equivalent to 0.18%. In this morning session, VN-Index fell by 0.46% to 1,646 points.

VN-Index closed the session with a spinning top-like candlestick, showing the market's hesitation and struggle around the 1,640-1,660 zone.

On the daily chart, the RSI indicator has broken sideways, and the MACD indicator has not shown a clear bottoming signal, indicating that the market needs time to accumulate and consolidate momentum.

In addition, the CMF indicator, although anchored above the 0 mark, has not yet strongly moved upwards, partly reflecting the caution of active buying money flow. Along with the general index still moving within the Ichimoku cloud band, the fluctuations around the 1,640-1,670 area will continue in the short term.

On the hourly chart, the general index is closely following the Senkou-span A cloud resistance line, equivalent to the 1,690 mark, and forming Spinning top and Doji candlesticks, indicating the market's hesitation in this area. The /-DI and ADX lines are both anchored below the 25 mark, so the tug-of-war movement with alternating increases and decreases will be the main development of the VN Index in the next session.

VN-Index has signals of finding a balance point around the 1,640-1,660 point range with liquidity lower than the 20-session average and market divergence. VCBS recommended that investors take advantage of the recovery in the session to continue restructuring their portfolios by eliminating weak stocks with strong selling pressure while looking for opportunities to disburse exploratory funds in stocks that show signs of confirming a successful bottom after the correction or in stocks that maintain a convincing upward trend when forming a new price base with increased active buying liquidity.

On the other hand, investors should also limit chasing stocks at high price ranges to guard against the possibility that the market will not continue to break out immediately but will adjust down to retest the most recent old bottom.