Investment analysis
Yuanta Securities: The upward trend may continue in the next session. At the same time, the market is still in a highly volatile phase, so corrections are still possible. Investors should not rush to buy but should wait for opportunities to buy during sharp corrections. Furthermore, the short-term sentiment indicator is rising and has moved above the overly pessimistic zone, suggesting that investors are more optimistic about the current market developments.
The short-term trend of the overall market has been upgraded from bearish to neutral. Therefore, Yuanta recommends that investors consider gradually buying and increasing their short-term portfolio allocation.
KB Securities (KBSV): Increased liquidity indicates overwhelming demand spreading across most sectors, putting the market in a more positive state. However, a short-term downward trend remains dominant.
The VN-Index is likely to soon face downward pressure around the resistance level of 1,095 points (+-10). KBSV recommends that investors reduce their holdings to a safe level and avoid chasing rallies.
Tien Phong Securities (TPS): The VN-Index extended its recovery after successfully holding the support zone of 1,020 - 1,040 points (61.8% Fibonacci Retracement level). Along with this, the appearance of White Marubozu and Rising Window candlestick patterns, coupled with improved liquidity (exceeding the 20-day average), indicates that buyers have regained control.
Currently, technical signals support a recovery trend for the index. If the upward momentum continues, the VN-Index will approach the resistance zone of 1,080 - 1,100 points (the downward price gap created on October 26, 2023, and the 20-day SMA). This will be a crucial resistance area that the index needs to overcome to reverse the upward trend in the short term.
Stock market news brief
- Following the recent sharp market downturn, many securities sector stocks have fallen below their 5-year average P/B ratio. With a low base in 2022, along with the first half of 2023 and the news that KRX will become operational at the end of 2023, this will be a significant driver for the growth of the securities sector in the coming period.
- The Fed continues its policy of not raising interest rates. On November 1st, as predicted by the market, the Fed decided not to raise interest rates after a two-day policy meeting. The benchmark interest rate in the US is currently around 5.25-5.5%, the highest in 22 years. The agency also did not raise rates in September. In its statement after yesterday's meeting, the Fed noted that " economic activity grew at a solid pace in the third quarter." Despite the Fed raising rates 11 times since March 2022 to curb inflation, the US economy has not yet entered a recession, with GDP growing 4.9% in the third quarter, mainly due to robust consumer spending.
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