Stock Market Perspective Week 19-23/5: VN-Index Approaching Resistance Zone, Possible Correction

After 4 consecutive sessions of increase, the Vietnamese stock market recorded a correction in the last session of the week. VN-Index closed at 1,301 points, down 0.9% compared to the reference. Liquidity on all 3 floors reached 23,048 billion VND, 13% lower than the average of 5 sessions and approximately the average of 10 sessions. Profit-taking pressure appeared clearly in the group of large-cap stocks, especially focusing on stocks that increased strongly during the week.

During this trading week (May 19-23), the VN-Index is expected to fluctuate in the range of 1,270 - 1,320 points, reflecting a short-term accumulation trend. Cash flow may continue to circulate among industry groups. Large-cap stocks, especially banking stocks, after the recent positive increase, are likely to lose momentum in price increases. On the contrary, mid- and small-cap stocks may receive greater attention from speculative cash flows.

Banking stocks recorded a relatively outstanding increase compared to the market, leading the VN-Index to surpass the 1,300-point mark and return to the price range before the US announced the tax on April 2, 2025. Some leading stocks such as TCB and MBB even approached or surpassed historical peaks.

Mr. Le Duc Huy, Head of Market Strategy, Agribank Securities Joint Stock Company, said that the upward trend of banking stocks will continue to be maintained. However, profit-taking pressure may increase next week as many stocks are approaching the intersection between the 50-day and 200-day moving averages - a decisive technical threshold. Developments in this area may act as an important test, shaping the next trend of both the banking sector and the general market, including the possibility of continuing the upward momentum, entering an accumulation phase, or forming a reversal peak.

Regarding the index, according to Mr. Huy, VN-Index is approaching the technical resistance zone around 1,316 points - the short-term peak before the correction in early April and it is likely that the market will need more time to absorb the supply at this price zone. This could be the area where fluctuations or short-term adjustments occur. The group of stocks that have increased rapidly in recent times, especially in the banking and logistics sectors, will likely be under profit-taking pressure when approaching the old peak.

Meanwhile, cash flow is showing signs of shifting to groups of stocks that have bottomed out and have deep discounts, typically technology and telecommunications. However, the ability of each stock to increase in price will depend largely on fundamental factors and growth prospects. Stocks that lack an internal foundation or specific supporting factors will find it difficult to attract cash flow sustainably.

To optimize profits, investors can flexibly combine investment strategies suitable for each group of stocks. Medium and long-term investors can prioritize stocks that are at attractive prices, have good fundamentals and profit growth plans in 2025, such as stocks in the technology group.

For short-term investors, choosing stocks that are attracting cash flow, have good price strength and technical signals can quickly bring expected profit rates. However, when the market is approaching important resistance zones, choosing stocks that have increased rapidly in the past can potentially pose short-term risks, especially when market sentiment becomes cautious and cash flow is not strong enough to support the general price level.

Therefore, instead of choosing to buy at high prices, investors should prioritize disbursing when stocks fall back to important support levels, helping to create better room for risk management in a volatile market context.

Source: https://baodautu.vn/goc-nhin-ttck-tuan-19-235-vn-index-tiem-can-vung-khang-cu-co-kha-nang-dieu-chinh-d285425.html