Stock Market Daily Forecast: Watch out for stocks approaching past highs

Caution is advised when stocks approach previous peaks to avoid potential short-term corrections when the VN-Index approaches 1,900 in the coming sessions.

*At the close of yesterday's session, the VN-Index closed at 1,867.62 points, up 7.48 points, equivalent to 0.40%.*

The Vietnamese stock market moved within a range of /- 7 points yesterday morning, fluctuating within a small range around the 1,860 mark. Selling pressure increased on some large-cap stocks such as VCB, VHM, FPT, and MWG.

Conversely, the oil and gas and securities sectors saw strong gains with BSR (6.11%), PLX (3.96%), TCX (4.39%), and SSI (2.22%), helping to support the VN-Index. At the end of the morning trading session, the VN-Index reached 1,862.93 points, up 2.79 points from the reference point.

Entering the afternoon trading session, the VN-Index continued to fluctuate within a narrow range before strong buying pressure emerged in some large-cap stocks such as HPG, VJC, and VIC, coupled with the oil and gas sector maintaining strong gains from the morning session, helping the index consolidate further around the 1,865-point level.

Highlights of the afternoon session included gains from fertilizer stocks, with DPM (5.91%), DCM (5.00%), and BFC hitting the ceiling price. Foreign investors reversed to net buying in today's trading session with a total transaction value of VND 319.22 billion, focusing on HPG, DGC, and BSR.

At the close of yesterday's session, the VN-Index closed at 1,867.62 points, up 7.48 points, equivalent to 0.40%.

The VN-Index closed with a slightly bullish pinbar candlestick, closing around 1,865 thanks to strong buying pressure in large-cap stocks. On the daily chart, the index fluctuated within a small range to test supply and demand around the 1,860-1,870 point range. The upward trend of the CMF indicator shows that active buying is dominant in the market; therefore, the VN-Index is expected to continue its upward momentum and enter a process of testing supply and demand at the old peak in the 1,870-1,910 point range.

On the hourly chart, the VN-Index tends to fluctuate around 1,860 points and form a short-term accumulation base. Technical indicators continue to anchor in the high zone; although not trending upwards, they haven't yet confirmed a complete reversal. Therefore, the immediate resistance zone for the VN-Index will be at the previous peak around 1,900 points, while the short-term support zone will be around the MA20 line, equivalent to 1,830 points.

The upward momentum of large-cap stocks remains the main driving force behind the VN-Index's fifth consecutive day of gains. In the current market context, in VCBS’s view, investors can consider investing in stocks that are attracting active capital and still have significant upside potential compared to the most recent previous peaks. Caution is advised when stocks approach previous peaks to avoid potential short-term corrections when the VN-Index approaches 1,900 in the coming sessions. Potential sectors to watch include banking, securities, and fertilizer.