Difficult to form strong uptrend

Investment Comments

Saigon - Hanoi Securities (SHS) : VN-Index is having good momentum to increase and also forming a small accumulation base as a foundation to support this index to continue to increase and approach the strong resistance of 1,300 points.

However, the uptrend is not supported by a reliable accumulation base, so SHS does not highly appreciate the possibility of VN-Index forming a strong uptrend, but rather favors the possibility that VN-Index, after ending the excitement, will adjust back to the accumulation channel of 1,150 - 1,250 points after this uptrend.

Short-term investors should be cautious at the current stage because VN-Index is moving at a high score in the medium-term accumulation channel, so short-term risks are increasing.

KB Securities Vietnam (KBSV) : KBSV assessed that the demand force has returned with a relatively positive effect spreading across most small and medium-cap stocks, showing the excitement of investors and the excitement of cash flow continues to show strong buying power ready to re-enter the market after corrections.

Although the recovery range is still relatively narrow and correction pressure is still present, the index is expected to maintain an uptrend in the short term or soon return in case of correction with the near support level placed around 1,240 (+/-5) points.

Beta Securities : From a technical perspective, in terms of trend, the VN-Index still maintains a short-term uptrend when it is above the MA10, MA20 lines and the SAR indicator continues to signal positive.

However, the strength of the short-term uptrend is showing signs of weakening as the MACD line is still narrowing the gap with the Signal line. At the same time, the RSI indicator continues to maintain an overbought state. It is likely that the market needs more time to accumulate to stabilize supply and demand before entering a new uptrend. Currently, the 1,240-1,250 point zone will act as support for the VN-Index.

In the coming trading sessions, the market is likely to trade sideways and accumulate before heading towards the resistance zone of 1,280 - 1,300 points. Large liquidity during this time creates positive sentiment for investors. It is likely that cash flow will diversify towards stocks with good accumulation bases and not yet increasing too "hotly".

Stock news

- Chairman Jerome Powell told the US Congress : 'The Fed is not ready to cut interest rates'. In a prepared speech for two hearings before the US Congress on March 6-7, Chairman Jerome Powell said that policymakers are still very concerned about the risks posed by inflation and do not want to loosen policy too quickly.
“When considering adjustments to the policy rate, we will carefully assess incoming data, the outlook, and the balance of risks. The Committee will not lower the target range until it is confident that inflation is moving toward its 2 percent objective on a sustained basis,” he said.

- ADP reports 140,000 jobs increase in February: Will it affect the Fed's interest rate decision ? Companies added 140,000 jobs in the month, +6.60 up from 111,000 in January but below the Dow Jones estimate of 150,000 jobs.
Employment rose across a wide range of sectors, led by leisure and hospitality with 41,000 jobs. Construction added 28,000 jobs. Along with the job growth, annual wages also rose 5.1%. ADP said this was the smallest increase since August 2021. This is a potential sign that inflation is easing .

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