Is it time to buy stocks?

Many securities firms believe the market is in a necessary accumulation phase. The 1,850-point level is considered a crucial support point that will determine the ability to maintain the uptrend.

Experts still recommend cautious disbursement, prioritizing risk management. Photo: Phuong Lam .

During the past trading week, the Vietnamese stock market witnessed intense tug-of-war between buyers and sellers, with the VN-Index continuously fluctuating within the 1,860-1,890 point range. In the first half of the week, the VN-Index mainly moved within a wide range, reflecting the cautious sentiment of investors and the lack of consensus among leading stock groups.

However, in the last two trading sessions of the week, profit-taking pressure increased in the banking and securities sectors before spreading to many other sectors. This development caused the market to lose its recovery momentum, with the VN-Index continuously facing downward pressure and retreating to test the support zone around 1,855 points in the final session of the week.

Notably, foreign investors continued their strong net selling position with a total value of VND 6,341 billion last week, an increase of over VND 5,783 billion compared to the previous week, thereby putting further pressure on domestic investor sentiment.

Closing last week, the VN-Index temporarily stopped at 1,863.49 points, down 13.64 points (-0.7%), marking the first week of correction after a prolonged upward trend.

What should investors do?

After two consecutive weeks of decline, many securities companies believe that the VN-Index is entering a consolidation phase and retesting its growth momentum, with the 1,850-point level continuing to play an important support role in the short term.

Analysts at Vietcombank Securities (VCBS) believe that the VN-Index closed the week's trading session with a Doji candlestick pattern, amidst a predominantly red market. This development reflects the continued presence of short-term selling pressure.

On the daily chart, technical indicators suggest the index is in a short-term consolidation phase around the 1,850-1,860 point range. VCBS assesses that the 1,840-1,850 point area, corresponding to the most recent bottom, continues to act as an important support level in the short term.

On the hourly chart, the VN-Index showed a certain recovery in the afternoon session. If the index maintains its recovery momentum in the coming sessions, the 1,870 point level will be the nearest resistance level to watch.

VN-Index fell for the second consecutive week. Photo: TradingView.

Regarding trading strategy, VCBS believes the VN-Index is still in a phase of testing momentum around the 1,850-1,870 point range. Capital flows continue to be clearly differentiated among sectors, while some stocks have begun to show signs of rebounding after a correction.

In this context, investors should closely monitor market developments in the coming sessions and exercise greater caution with new buying positions. Investors should prioritize taking advantage of intraday fluctuations to execute short-term trades on stocks already in their portfolios.

Meanwhile, Yuanta Securities Vietnam assessed that the VN-Index fluctuated within a narrow range in the last trading session of the week as supply and demand were relatively balanced. This indicates that the market's downward momentum has shown signs of weakening in recent sessions.

Based on current developments, Yuanta believes the market is undergoing a relatively healthy consolidation phase and is likely to return to an uptrend next week.

With a outlook of less than one month, this broker recommends that investors continue to maintain their current stock holdings and may consider making new purchases during corrections or intraday fluctuations. Preferred sectors include state-owned banks, the Vingroup ecosystem, securities, and oil and gas.

Looking ahead 1-5 months, the VN-Index recorded its second consecutive week of decline, although market liquidity tended to gradually decrease. This development suggests that selling pressure was not too strong, while the medium-term uptrend remains intact.

The market is currently still in an uptrend consolidation phase, and the 1,940-1,970 point range will be the short-term target for the next upward move. Therefore, investors can take advantage of corrections to increase their stock holdings.

The signals indicate that the market is forming a base.

According to SSI Securities Company's assessment, despite experiencing volatility during the session, the VN-Index closed the last trading day of the week in a balanced state and maintained its score above the important support zone of 1,850-1,860 points.

The index's trading range is gradually narrowing, indicating that the market is in a consolidation phase, awaiting a stronger surge in the short term. In this context, the 1,880-1,900 point range will act as the nearest resistance, while the area around 1,850-1,860 points continues to be a support zone to watch.

Experts from BIDV Securities Company (BSC) believe that the market has not yet established a clear trend. Therefore, investors should continue to maintain caution in trading until a more specific upward or downward trend confirmation signal appears.

Tien Phong Securities (TPS) believes that in the short term, the market is undergoing a healthy correction and accumulation phase within an uptrend. Therefore, investors should prioritize a holding strategy while proactively managing risk. New purchases should only be made after careful selection, and investors should maintain a reasonable cash allocation to be ready to respond when the market trend becomes clearer.

Source: https://znews.vn/da-den-luc-mua-chung-khoan-post1655841.html