Stock Market Daily Forecast: A tug-of-war is inevitable

Continuing the upward momentum, the VN-Index opened in green and surpassed the 1,725 mark in the first 30 minutes of yesterday’s session. In the remaining time in the morning session, the VN-Index mainly fluctuated within a small range around the reference mark. The bright spots of the session belonged to the Banking group (CTG, BID), Retail (MWG, DGW), and Aviation (HVN).

On the contrary, the group of stocks that played a pivotal role for the market in previous sessions, such as VIC, VHM, and VJC, recorded a slight adjustment. The active buying cash flow was somewhat more active with 171 green stocks and 125 red ones.

The general momentum continued to be reinforced in the afternoon session when the VN-Index continuously widened its range and reached the highest peak of the session at 1,741.65. Banking and retail stocks remained the main focus, with purple appearing in FRT, MWG, and CTG during the session, and other stocks in the same group also recorded a good increase of over 3%. Demand spread across the market as many groups welcomed the participation of cash flow, such as steel, industrial parks, and public investment stocks.

In the same direction as domestic investors, foreign investors net bought with a total net value of VND 3,797.96 billion, of which they strongly bought VPL with VND 3,439.67 billion.

At the end of yesterday's session, the VN-Index closed at 1,731.77, up 14.71 points, equivalent to 0.86%.

The VN-Index closed with a spinning top candle showing hesitation after the index advanced to the resistance zone of 1,735-1,740. On the daily chart, it conquered the 1,740 mark again in yesterday's session with improved active buying liquidity. The general trend of the main indicators, such as RSI and MACD, is still upward; however, the CMF indicator is breaking down and the ADX line has not yet agreed with the DI line above 25, so the VN-Index's growth momentum may slow down in the coming sessions when short-term profit-taking pressure increases in the resistance zone.

On the hourly chart, the RSI indicator is pointing down from the high zone, while the index ended the session with a red candle, showing a signal of supply pressure in the market. The VN-Index also recorded a slight correction after going beyond the upper boundary of the Bollinger band, so it is necessary to pay attention to the continued tug-of-war in the area around 1,730 in the next sessions.

The momentum from large-cap stocks in the banking and retail sectors helped the VN-Index continue to widen its range and conquer resistance levels. The plus point is that the green color has spread to many industry groups instead of just focusing on a few pillar stocks as before.

VCBS recommended investors consider increasing the proportion/opening new buying positions for stocks that confirm the uptrend with a convincing increase in active buying liquidity while still having significant room to increase compared to the nearest resistance level. In addition, investors should note to limit disbursement in stocks that have increased strongly and are approaching the old peak to avoid the risk of unexpected correction. Some notable market sectors include banking, public investment, and retail.