The main short-term trend is still down.

Investment Comments

KBSV Securities: VN-Index experienced a strong shake during the session before reversing to recover and increase points towards the end of the session. The buying force once again increased strongly around the 1.08x support zone, combined with the support from large-cap stocks, helping the market situation become somewhat more positive.

However, with the downtrend still playing a dominant role, VN-Index is likely to face strong correction pressure back around the 1,140 threshold. Investors are recommended to prioritize restructuring their portfolios to a safe level during early recoveries and only partially increase their weight back around the distant support level.

Phu Hung Securities: From a technical perspective, VN-Index has had a session of increasing points again. Trading volume remains below the 10- and 20-session average, implying that selling pressure is almost exhausted. However, the index is still below the MA20 line pointing down, with MACD below Signal maintaining a sell signal, indicating that the main short-term trend is still down and the recent increase has only stopped at a technical signal, with resistance around 1,130 points (MA20).

Therefore, investors should be cautious with decisions to buy at high prices. In general, the market may experience a technical recovery lasting 3 to 5 sessions after the increase on October 24. Therefore, investors can consider taking short-term positions with a small proportion, with priority given to stocks with good fundamentals, positive business results and attracting cash flow.

PSI Securities: The technical chart of VN-Index is a Marubozu bearish candlestick, showing that selling pressure is still relatively strong. Liquidity continues to be low and below the 20-session average, showing cautious sentiment from investors. Currently, the resistance zone of VN-Index will be the 1,070 - 1,085 point zone.

In addition, the RSI indicator is currently in the oversold zone, so there is a high possibility that there will be technical recoveries in the next trading sessions. The current appropriate recommendation is to only restructure short-term stock portfolios during market recoveries, avoiding selling stocks during market fluctuations.

Stock news

- The World Bank has raised its rubber price forecast for the whole year 2023 to an average of 1.4 USD/kg and for 2024 to an average of 1.5 USD/kg, an increase of more than 7%.

- According to the latest data released by the State Bank, the average interbank VND interest rate at the overnight term (the main term accounts for 90% of transaction value) in the session on October 20 increased sharply to 1.47% from 0.79% recorded in the previous session (October 19).

This is the highest interest rate since mid-June 2023 and is much higher than the interest rate mobilized at terms of less than 1 month of banks (0.1 - 0.5% / year). Compared to the level recorded 1 month ago (session 20/9), the interbank overnight interest rate has increased more than 9 times .

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