How will stocks be after the 'red fire' session?

According to a group of experts from Asean Securities (Asean SC), the market recorded a significant decrease on the first day of the week with the closing price at the lowest level of the day, in the context of slightly reduced liquidity, showing that the sellers are temporarily dominating and the short-term trend is showing signs of deterioration. Therefore, Asean SC believes that the market will likely continue to have a downward momentum before finding a new balance.

"It is forecasted that in the next trading session, VN-Index will have a downward momentum in the morning session to test the support zone near 1,015 - 1,020 points and further the support zone of 1,005 - 1,010 points. The tug-of-war is expected to appear at low prices and can help the index recover to a certain extent afterwards, before there is a clearer trend distinction towards the end of the day. In which, the support zone is the area where demand can appear to help the index recover, and the resistance zone is the area where selling force can appear to cause the index to decrease again," Asean SC's report stated.

How will stocks be after the 'red-hot' session? - 1 — VN-Index is facing the risk of continuing to extend its downward momentum in the trading session on March 21. (Illustration photo)

Sharing the same view, experts at KB Securities Vietnam (KBSV) said that the risk of extending the downward momentum in the next session. According to KBSV, losing the important support level around 1.03x points has caused the index to return to a downward trend in the medium term.

VN-Index is facing the risk of continuing to expand its downward momentum in the next session and falling to the near support level of 1,015 - 1,020 points and deeper to 1,000 points to find bottom-fishing demand.

"Investors are recommended to increase their trading proportion when the prices of target stocks are around the support level," KBSV Securities experts recommended.

Similarly, experts from Vietcombank Securities (VCBS) said that due to the impact of negative information from the world economy , VN-Index continued to decline under selling pressure from the beginning of the session, falling below the 1030 point area. Active selling liquidity accounted for 80% of total market liquidity, showing that investors' sentiment was still very pessimistic in the face of not-so-positive information from the world economy .

In line with the world stock market, VN-Index was under selling pressure from the beginning of the session, causing the market to be submerged in red with more than 250 stocks losing points. In particular, retail and chemical stocks were the most affected with a decrease of nearly 2%. In addition, the red covering the large-cap stocks of VN30 also created a negative premise, causing VN-Index to continuously lose points, falling close to the 1,030 point area.

From a technical perspective, the VN-Index created a red candlestick falling below the MA20 moving average, indicating a negative market trend. In addition, all indicators simultaneously gave negative signals, signaling that the decline has not shown any signs of slowing down.

In terms of the daily chart, the ADX and DI- indicators are trending up, indicating that the market's decline may still continue. The market's nearest support level is currently still the 1,015 - 1,025 point range. If the situation does not improve and the general index falls below this range, the risk will be alarming.

"We continue to recommend that investors proactively bring their account ratios to a safe level to minimize risks when the market declines in the short term instead of disbursing early bottom-fishing in support zones," VCBS experts emphasized.

Still from a cautious perspective, experts from Dong A Securities (DAS) said that in the first trading session of the week, the stock market fell sharply following the general trend of the world market, investors should be cautious before the complicated developments of the global financial market.

Large-cap stocks are under strong selling pressure, leading to negative developments in all small- and medium-cap stocks. Market liquidity is at an average level, with no bottom-fishing buying pressure yet when stock prices fall sharply. The VN-Index is showing a tendency to continue to decline in the short term, with the nearest support level at 1,000 points.

"Investors should focus on risk management for accounts using margin leverage, waiting for trading opportunities when the market is more balanced. Monitor groups of stocks with favorable business situations in 2023 such as "public investment" stocks, or industrial park stocks, electricity stocks," DAS experts recommended.

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