Stock Market Weekly Forecast: VN-Index could still perform well

During the trading week of May 4th - 8th, the VN-Index fluctuated around 1,855 points from the opening session. Throughout the week, active buying pressure consistently targeted blue-chip stocks. VIC, VHM, STB, and LPB were the stocks that helped the index continuously break through and surpass major resistance levels. In particular, increased demand on May 7th helped the Vietnamese stock market set a new all-time high at 1,924.95 points. Liquidity last week continued to be a positive factor, with an average total trading value of nearly VND 19 trillion.

Entering the morning session of May 8th, the VN-Index faced significant profit-taking pressure right from the opening, causing it to fall by 10 points in the first 30 minutes. However, active buying pressure quickly entered the market in leading sectors such as banking, helping the index significantly narrow its decline. Towards the end of the session, selling pressure continued to increase, causing the general index to close below the reference level.

At the opening of the afternoon session on May 8th, large-cap stocks continued to support the market as demand for VIC, VHM, VIX, and GEX helped the VN Index surge 24 points, closing above the reference level. However, foreign investors continued their net selling trend with a total net selling value of 868 billion VND.

At the close of last week’s session, the VN-Index closed at 1,915.37, up 6.36 points, equivalent to 0.33%. For the week, the VN-Index increased by 54.91 points (2.96%) compared to the previous week.

The VN-Index closed on May 8th with a spinning top candlestick, indicating investor hesitation as the market approached the historical peak around 1915. On the daily chart, two important momentum indicators, MACD and RSI, are in overbought territory but have not yet shown signs of weakening. The CMF money flow indicator also shows an increase, suggesting a high probability that the VN Index will continue to experience alternating periods of gains and losses with divergence to stay close to the short-term resistance level.

On the hourly chart, similar to the daily chart, important momentum indicators like MACD and RSI have only formed a peak and have not yet shown any negative divergence, further reinforcing the view that the VN-Index will continue to consolidate at the peak before a new breakout.

The VN-Index could still perform well at its peak with alternating periods of gains and losses and differentiation among sectors. Furthermore, the gradual increase in liquidity in recent sessions indicates a return of investor confidence. VCBS recommends that investors continue to maintain their stock portfolios, considering investing during market fluctuations, prioritizing stocks that hold their support levels or are attracting capital in sectors such as banking, retail, and steel.