Research Center

The captured long positions on VN30F2109 at 1,427 pts should not be close and stop the loss when there is the closing price below 1,405 pts level (Hourly chart).

In this situation, traders should wait for confirmation signals to increase the long position. Besides, the long-term uptrend is still intact. Hence, the contraction is the opportunity to accumulate stocks for long-term positions at significant supports such as the 1,250-pts threshold.

Despite the fourth gaining session, the VNIndex has not yet confirmed the uptrend. Until the VNIndex closes above the 50-period Moving average or 1,340-pts threshold, traders should be careful and stay on the sidelines.

Buy VN30F2109 after ATO session and out the positions only when there is the closing price below 1,405 pts level (Hourly chart).

Despite the second bullish session, the VNIndex has not yet confirmed the uptrend. Until the VNIndex closes above the 50-period Moving average, traders should be careful and stay on the sidelines.

Based on data of 31 Aug, we expect that FTSE Vietnam ETF will add VCI and not exclude any ticker in the 4Q21. Besides, VanEck Vectors Vietnam ETF will not remove Vietnam stock but add KDC and DGC in this quarterly review.

Foreign selling pressure kept spreading to major sectors, such as Real Estate and Industrials. On the contrary, Financials turned around to be net bought. The outflow kept spreading to other major ETFs. Particularly, the money outflow continued to be driven by the divestment across Fubon FTSE Vietnam ETF and VFMVN Diamond ETF.

Although there is the upward swing, the downtrend is still active. Thus, traders should stay on the sidelines and observing the reaction of VN30F2109 at the strong supply zone (1,450 pts area).

Despite the bullish session, the VNIndex needs the breakout (closing above the 50-period Moving average) to confirm the uptrend. Until then, traders should be careful and reduce long positions.

Vietnam’s fast-growing economy is reversing towards contraction territory shortly after 2 months of Delta’s variant impact. A long period of growth in export and industrial sectors has abruptly ended in August, while the services sector is almost completely locked down with current mobility restrictions. Whether it is a temporary disruption or a potential recession depends on an answer of when the government brings the outbreak under control.