Securities companies warn of potential bull trap as VN-Index eyes 1,300 points
Securities companies expressed optimism about the VN-Index's potential to reach the 1,300 point range in the upcoming sessions. However, they caution investors to remain vigilant and be mindful of the possibility of a bull trap emerging in the market.
Securities companies expressed optimism about the VN-Index's potential to reach the 1,300 point range in the upcoming sessions. However, they caution investors to remain vigilant and be mindful of the possibility of a bull trap emerging in the market.
On the Hồ Chí Minh Stock Exchange, the VN-Index rose for third day on Friday, adding 0.4 per cent to close at 1,281.8 points.
An average of 1.2 billion shares were traded on the southern exchange during each session last week, worth VNĐ30.4 trillion (US$1.2 billion).
The VN-Index experienced a significant increase at the end of Friday's session, moving closer to the previous peak of around 1,277 points, supported by strong buyer demand. This positive momentum and improved liquidity indicated a dominant opportunity for continued recovery and progress towards the next target range of 1,290-1,300.
While upward movements may face some selling pressure, the index is expected to find notable support around the 1,250 level. Investors are advised to prioritise purchasing leading blue-chip stocks in sectors such as banking, construction, oil and gas, and textiles, said cafef.vn.
Looking ahead, it is anticipated that the VN-Index may encounter resistance in the range of 1,280-1,300 in the upcoming trading sessions, as indicated by BIDV Securities Co. However, the market is showing signs of entering a period of strong positive fluctuations, suggesting that the resistance area of 1,268-1,280 points may soon be surpassed.
Caution is advised by KBSV Securities due to the risk of a trend reversal when the index approaches the next resistance zone at around 1,300.
Investors should avoid chasing the market during upward trends and consider implementing a proactive selling strategy, taking partial profits when the VN-Index surpasses its previous peak, it said.
From a medium-term perspective, the VN-Index exhibits strong upward momentum. However, it is possible that the market may require more time to accumulate before breaking the 1,300 point barrier and establishing a sustained uptrend. SHS Securities suggests that after the recent increase, the market will likely undergo an adjustment phase and consolidate within the range of 1,150-1,250 points or 1,300 points. — VNS
