Analysts are cautious about market developments this week, predicting high short-term correction pressure.
The market experienced a volatile trading week, with alternating periods of gains and losses as the index approached strong resistance levels. Active selling pressure continuously increased whenever the VN-Index neared the tough resistance of 1,120-1,125 points. In the final trading session of the week, strong selling pressure returned towards the end of the session, causing the index to reverse and fall below the reference level.
According to Vietcombank Securities Company (VCBS), the slightly lower liquidity in the last trading sessions of the week compared to the 10-day average indicates that investors remain cautious about the resistance level.
This week's forecast from VCBS analysis team suggests a high probability of a short-term market correction. On the hourly chart, both the MACD and RSI indicators are simultaneously signaling a short-term decline.
However, the analysis team still assesses the market as having positive developments, and the appearance of fluctuations is necessary to create momentum for the VN-Index to potentially move towards higher levels. In a positive scenario, the HoSE index could consolidate, with alternating increases and decreases within a range of about 20 points around the 1,110-1,130 point area.
"We recommend that investors closely monitor market developments this week, maintain a cautious attitude, and patiently wait for the market to signal equilibrium before resuming new investments," the VCSB report stated.
Sharing a cautious view, KB Securities Vietnam believes that the VN-Index is likely to continue its downward momentum in the first trading session of this week, retreating to the support level near 1,105 - 1,110 points and even further to 1,09x in search of bargain hunting.
Similarly, Rong Viet Securities Company (VDSC) shared the view that the market could not successfully break through the 1,125-1,130 point resistance zone due to continued profit-taking pressure at this level. The significant increase in liquidity in the last trading session of the week before the index reversed also indicates the presence of selling pressure.
However, the decline was relatively small, which may indicate that waiting investors were also trying to support the market and prevent a deeper drop. According to VDSC, the market will need time to re-examine supply and demand around the current price level before any more concrete signals emerge.
KB Vietnam's analysis team recommends that investors continue to apply a rotational trading strategy, holding a portion of their positions and combining buying at support and selling at resistance levels for individual stocks with the remaining positions.
Minh Son
Source link
Comment (0)