Stock Market Weekly Forecast: An uptrend is expected in the coming sessions

The VN-Index had a positive trading week with strong buying demand recovering after the previous week's decline, especially with the VN-Index recording a strong increase of over 30 points in the third trading session (December 16th) and a nearly 30-point increase in the final session of the week, helping the VN-Index regain 1,700 points.

At the opening of the week's trading session, the market saw a strong tug-of-war between buyers and sellers around 1,640 points. In subsequent sessions, cash flow improved significantly, evidenced by increased liquidity, along with the return of capital to banking and securities stocks, helping the VN-Index record a strong upward trend. The green color gradually spread across the market with the dominance of active buying, especially in large-cap stocks, helping the VN-Index maintain the 1670-point level.

Foreign investors were net sellers last week, with a total value of VND 338 billion in the first four trading sessions, a decrease of over VND 5100 billion compared to the same period the previous week.

In this morning's trading session, the VN-Index opened up 2 points thanks to increased demand for some large-caps in the banking sector. The upward momentum then widened further due to positive demand for other large-caps such as VIC, VPL, MSN, and GAS. By mid-morning, the upward trend of banking stocks weakened somewhat compared to the beginning of the session, causing the VN-Index to partially narrow its gains from the intraday peak.

In the afternoon session, the VN-Index fluctuated around 1,690 points in the first half before strong demand for Vingroup stocks pushed this index above 1,700 points. The green color also spread to many other large-cap stocks such as HPG, MSN, MWG, and several other sectors such as real estate and oil and gas, helping the general index maintain the 1700-point mark after the ATC session. Notably, foreign investors reversed to strong net buying today with a total value of over 501.71 billion VND, focusing on buying HPG, SSI, and BSR.

At the close of the session, the VN-Index closed at 1,704.31 points, up 27.33 points, equivalent to 1.63%. At the end of the week, the VN-Index increased by 57.42 points (3.49%) compared to the previous week.

The VN-Index closed the week with a green candlestick, indicating a gain thanks to positive performance in large-cap stocks. On the daily chart, both the MACD and RSI indicators are trending upwards after previously bottoming out, showing strong market momentum. Simultaneously, the CMF indicator remains above 0, indicating continued active buying. If the upward trend continues in the coming sessions, the immediate target for the VN-Index will be the previous peak around 1,760 points.

On the hourly chart, the VN-Index continues to trade above the MA20 line with slight fluctuations during fund restructuring. The CMF indicator is at 0.37 and continues its upward trend, showing continued active buying in the market.

The VN-Index closing the week above 1,700 points shows that the market's efforts continue to be strengthened. However, cash flows are also diversified, mainly concentrated on a few large caps, and only certain sectors attract significant attention.

Therefore, VCBS recommends that investors maintain their holdings of stocks that are in a stable uptrend and have not yet seen strong selling pressure. At the same time, they should selectively choose stocks that have successfully broken through resistance or tested convincing support levels with the support of active buying liquidity to invest in short-term trading. Some sectors to consider in the coming sessions are banking, public investment, and securities.