You should wait for a breakout signal.

Stock market outlook for the first week of June: Wait for a breakout signal.

Agriseco Research recommends that for new investments, priority should be given to waiting for signals of the market breaking above its peak, or investments could be made in VN30 stocks and leading industry stocks with the expectation of anticipating the leading group when the market surpasses its medium-term peak.

After a week of trading under downward pressure at the strong resistance level around 1,285 points, the VN-Index continued to trade within a narrow range this week, recovering well at the 1,250 point level and facing downward pressure at the 1,285 point resistance level.

The market closed the week at 1,261.72 points, down slightly by 0.02% from the previous week. Thus, the market experienced a recovery in May, rising 4.32% after facing significant downward pressure in April 2024.

Liquidity on the HoSE reached VND 109,520 billion this week, a sharp decrease of 20.8% compared to the previous week. Many stocks/groups of stocks continued to recover in turns, with strong buying pressure at the 1,250-point support level, and significant improvements in the mid-cap and small-cap groups.

Foreign investors continued their strong net selling trend with a rather significant surge in value this week, reaching VND 6,085.48 billion on the HOSE, concentrated in large-cap stocks in the VN30 index, while net buying on the HNX with a value of VND 33.36 billion.

During the week, several stock groups stood out, including retail (PET (+8.44%), MCH (+6.00%), FRT (+5.90%), MWG (+5.12%)), and technology stocks, which recovered well with gains (CTR (+3.95%),FPT (+2.05%), CMG (+2.01%).

The most outstanding highlight was the textile and garment stocks, which surged dramatically in the final trading session of the week, ending the week very positively with GIL (+7.15%), M10 (+6.40%), TNG (+5.14%), VGT (+3.90%)...

Recent data from the textile and garment industry shows signs of recovery, supporting the growth momentum of businesses in the sector. In the first five months of 2024, exports increased by 4.4% year-on-year, reaching $15.7 billion, and production also increased by 5.4%. In April and May 2024, the industry's employment index showed positive growth for the first time after 16 consecutive months of decline.

Overall, the VN-Index continues to fluctuate within a range of 1250-1300 points. Therefore, existing positions that haven't violated the short-term trend can be maintained. For long positions, it's advisable to watch for dips and corrections to optimize stock accumulation, paying particular attention to stocks with strong upward momentum and significant room for growth.

According to Agriseco Research experts, on the technical chart, the VN-Index closed right at the 20-day moving average after fluctuating around the medium-term peak. The RSI indicator showed a sideways movement in the neutral zone. In addition, the Bollinger Bands are gradually narrowing, signaling that the market will soon return to stronger and more decisive movements to determine the short-term trend.

Similar to last week, there is a chance for the VN-Index to rebound soon and confirm a successful re-accumulation pattern, especially since bottom-buying demand always participates at crucial moments, helping the index maintain its trend.

However, support demand at short-term moving averages is often quite limited. Agriseco Research believes that the VN-Index needs to return to the 1,280 (+-5) point level soon to open up a medium-term uptrend.

Conversely, in a negative scenario where the VN-Index fails to maintain the MA20 at 1,260 points from the beginning of the week, the market is likely to continuously break through previously reliable support zones due to the appearance of a double top distribution pattern.

Agriseco Research recommends that investors manage risk by reducing the proportion of short-term trading positions in stocks that have not yet surpassed their year-to-date peaks. Regarding new investments, priority should be given to waiting for signals of a market breakout, or investments could be made in VN30 stocks and leading industry stocks, with the expectation of anticipating leading stocks when the market surpasses its medium-term peak.

The recommended portfolio for June 2024 includes 6 stocks: DRI, GDA, HPG, MBB, PVT, and VHM.

Source: https://baodautu.vn/goc-nhin-ttck-tuan-dau-thang-6-nen-cho-doi-tin-hieu-vuot-dinh-d216654.html