Vietnam VN-Index Near 1,850 Resistance as Liquidity Eases

Local brokers said the index ended August up 5.55%, snapping two straight months of decline, and then added another 3.62% in the final week of the month, or 64 points, to reclaim its position above the weekly 20-day moving average. Technical gauges such as the 10-day and 20-day moving averages, along with RSI and MFI readings, still point to positive short-term momentum, but several firms warned that selling pressure has already started to build.

Kirin Securities said the market could still extend toward 1,850 points in the coming weeks, but that area may trigger profit-taking and pull the index back toward the psychologically important 1,800 level before any further advance. Asean Securities also sees room for a brief correction toward 1,820 points, while TPBS said the market stayed balanced into the holiday break and should remain constructive after it.

For investors, the message is less about abandoning the rally than about avoiding late entries. Brokerage houses broadly recommend keeping existing positions, favoring stocks with strong cash flow and their own catalysts, and resisting the urge to buy into strength as the index tests resistance.

Foreign buying has helped steady sentiment, while Vingroup, banking, securities and technology names such as FPT have attracted attention. The backdrop also includes expectations of larger passive inflows tied to Vietnam’s FTSE reweighting, which has kept medium-term bullish bets alive even as short-term traders turn more selective.

The immediate risk is simple: if liquidity keeps fading near resistance, the VN-Index may need a cooling-off phase before it can convincingly break higher. That leaves the next sessions focused on whether cash flow broadens enough to push through 1,850 points, or whether profit-taking forces a retreat toward support first.