For the third time in a trading week, the market has failed in its efforts to break the resistance level of 1,340 points. Selling pressure increased again at high prices. Liquidity matched for the first time fell below the average of 20 trading sessions after nearly a month, reflecting a cautious and "transaction-prone" state in the high price range.
Investors are cautious about the decline in trading value matching orders in the derivatives expiration week, which could lead to unpredictable market fluctuations. Adjustment pressure may appear, causing the VN-Index to need time to accumulate before establishing a new trend. However, the uptrend has not been broken, so fluctuations can create opportunities for investors to restructure their portfolios.
During the current period, the VN-Index has had a 2-month increase, reflecting the positive sentiment of investors as well as the improvement of the economy. However, after a period of strong increases, the market often tends to adjust to consolidate the price base and restructure cash flow. This adjustment process is a natural development, as many investors tend to take profits, leading to adjustments in many stocks.
An important factor to note is that liquidity in the current market is not at a high level as some previous growth cycles. This partly reflects investors' cautious psychology as well as the lack of cash flow to create a steady increase on a large scale. Instead, cash flow tends to circulate between leading stocks, especially large-cap stocks, causing the market to have selective increases.
In the positive scenario, the market will quickly increase to the target price range of 1,340 - 1,350 points without accumulation adjustment. At that time, investors' sentiment can easily reach a state of excitement because of the continuous supply of good information. Experts recommend that the necessary action for investors today is to prioritize psychological management and portfolio management, avoiding the FOMO mentality following the price increase. It is forecasted that the price zone around 1,350 points will cause excitement, creating FOMO psychology. Investors should be wary at this stage with signs of hot increase, profit-taking and cash flow reversal in stocks that have increased sharply.
At present, flexible trading is still a suitable strategy, short-term trading activities taking advantage of market opportunities are necessary. Valuable investors may choose to buy stocks with a longer vision. This period can both make a profit and have the opportunity to select potential stocks to buy. However, buying a new one must be carefully calculated and considered, because the opportunity to find a profit gradually becomes more difficult than before.
Moreover, although the market has increased well in the past 2 months, the increase has been uneven between industry groups and the cash flow mainly circulates between industry groups that benefit from macro policy developments. Therefore, in the context of the market entering the differentiation stage, risk management should be given top priority.
The advice from experts for investors is that if the portfolio has good profits, they should realize partial profits, especially for stocks that have increased strongly and are approaching the resistance level. Keeping a part of the portfolio or restructuring to stocks with room for growth will help optimize profits, while still maintaining a good position in the market.
