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Stocks forming a short-term uptrend with strong liquidity

The profit-taking pressure was somewhat weakened, combined with an increase in active buying, helping the VN-Index to record a positive gaining session. Yesterday's market recorded a slight gain, with the price closing near the highest level of the day, in the context that the liquidity increased quite well and was higher than the 20-day average. This shows that the buyers are temporarily dominating, and the uptrend remains. Therefore, it is expected that the market will continue to gain momentum in the next session.

For now, the market will focus on the results at the critical resistance of 1,060 points. In case of successfully conquering this resistance, the index will have a chance to find the adjacent peak at 1,080 points and attract new buying cash flow. Besides, investors must also observe the market's reaction after the US CPI information was announced last night. It is forecasted that in the next trading session, VN-Index will have increasing inertia in the morning to test the resistance area near 1,060-1,065 points and, further away, the resistance area of 1,070-1,075 points. The shaking may occur at high prices, causing VN-Index to narrow it's gaining momentum towards the end of the day.

Experts of Vietcombank Securities Company gave an analysis from a technical point of view; VN-Index ended the session by creating a Spinning top candle, showing investors' hesitation around the psychological point of 1,060 points. Regarding the hourly chart, VN-Index continuously made Spinning tops and inverted hammer candles, indicating that the selling pressure is still significant, and the current demand cannot help the market overcome this resistance level convincingly. VN-Index will continue to shake and trade in a narrow range in the coming sessions, and it is impossible to confirm that the market can enter a more extended uptrend in the short term. However, the divergence was still quite clear when the demand was still looking for individual stocks in industry groups such as real estate, retail, and chemicals. It is recommended that investors maintain the proportion of stocks below 40% of the account during this period and only increase the ratio from 10-20% for available supplies in the industry mentioned above groups.
Also readVN-Index posts one-month high on increasing cash inflow » Breaking News, Latest World News Updates - VietReader Viet Nam 
KB Securities Vietnam (KBSV) also commented that the profit-taking pressure was somewhat weakened, combined with the increased active buying force, which helped the VN-Index to record a positive gaining session. When the index successfully conquers the critical resistance level of 1,055-1,058 points, VN-Index has many opportunities to extend the rally and move to the next resistance around 1,070 points. Investors are recommended to sell and lower the proportion of trading opened around the close resistance zone of holding stocks.

Also, in the positive movement of the stock market today, CafeF Newspaper reported on potential industry groups at a time when the stock market has received a new "wave" of increase. After a sharp slide in 2022, VN-Index regained its balance and accumulated within a narrow range. Given the instability of the international market and the difficulties of the domestic economy, analysts forecast that the stock market will hardly end its sideways trend in the short term. However, from a long-term perspective, this is a golden time to accumulate stocks and prepare to catch the "wave" of the stock market.

Also read: VN-Index extends its long winning streak » Breaking News, Latest World News Updates - VietReader Viet Nam
Therefore, many investors have also begun to look to the strategy of buying and selling stocks with the expectation of making long-term profits.
Mr. Nguyen Tuan Anh, the founder of FinPeace, said that the retail group is one of the industry groups with considerable long-term growth potential in Vietnam. For example, large domestic banks have only served 1/5 of the population in retail banking, while small banks have only served about 1/10 of the people. Moreover, in the era of promoting technology and digital transformation, there are many online and technology-related activities in banking alone. This shows that the growth potential of retail banks is still enormous.
Besides, the industry group related to the production of essential materials for growth - especially infrastructure growth (for example, the steel industry) will also have room for growth in the next 10-20 years. Because the growth path of our country is still long, Vietnam is still in the stage behind many developed countries.

The third industry group is technology-related. The technology era brings technology into every corner of life, so this is also an industry group with much room for growth in the future.
Regarding the method of selecting stocks to accumulate assets, investors should note 3 factors:
(1) Know the signs of a business going bankrupt or on the verge of a sudden decline in business.
(2) Selected enterprises must have a growth rate of 2 to 2.5 times compared to the average growth rate. For example, the current average is 7%, so we should choose businesses with growth of 15% or more.
(3) The most important thing when choosing an asset stock is that the price must be cheap enough to buy.

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