VDSC forecasts that the market will retest supply at the 1,277-1,283 point range in the next trading session. Investors should consider market recoveries to take profits or restructure their portfolios to minimize risks.
VN-Index closed in green with a late-session bounce thanks to the acceleration of pillar stocks. At the end of the trading session on July 18, the index closed at 1,274.44 points, up 5.78 points from the previous session.
Trading liquidity on all three exchanges remained at a good level, reaching nearly VND21,700 billion. The focus was on foreign investors continuing their positive net buying momentum with a value of nearly VND1,000 billion on the HSX.
Commenting on the trading session at the end of the week, July 19, most securities companies believe that the main index will continue to increase, moving towards the next resistance levels.
Good recovery, expected to surpass 20-session average price
In the short term, SHS expects that the VN-Index is recovering and surpassing the average price of the last 20 sessions, with a relatively good recovery rate. A fairly positive point now is that the liquidity of the VN-Index after a long period of decline is improving quite well with the average transaction value of the last 3 sessions being over 20 trillion VND, showing that the cash flow has improved quite well.
Advance to the 1,277 – 1,283 point zone
The market continued to be supported at the 1,255 - 1,260 point range and recovered. Liquidity decreased compared to the previous session but still maintained the 20-session average, showing that cash flow is trying to support the market against supply pressure. The market is expected to retest the supply at the 1,277 - 1,283 point range in the next trading session.
However, it is still necessary to temporarily pay attention to the possibility of being blocked in this area and returning to a cautious state of the market, due to the impact of recent unstable developments. Therefore, investors need to slow down and observe supply and demand developments to reassess the market state. In addition, it is necessary to consider market recovery phases to take profits or restructure the portfolio to minimize risks.
Continuing the uptrend, testing the resistance of 1,280 points again
The market may continue to increase in the next session and the VN-Index may retest the resistance level of 1,280 points. At the same time, the market is still in a short-term accumulation phase, so cash flow may continue to be diversified and liquidity may remain low in the coming trading sessions. In addition, the sentiment indicator continues to decrease, showing that investors are still cautious about the current market developments.
The uptrend remains intact.
On the technical chart, the buying force at the end of the session helped VN-Index create a candle with a short leg and close above the two short-term moving averages MA20/MA50. Agriseco Research believes that maintaining liquidity greater than VND20,000 billion/session and exceeding the 20-day average as it is now is an ideal level for the market to increase, because this shows that the buying force is maintaining well while the short-term selling pressure has cooled down rapidly. In the context of positive macro factors, the market will still maintain a medium-term uptrend and fluctuations are opportunities for disbursement. The 1,245-point area is expected to be a reliable support point, maintaining the short-term uptrend of the market.
Source: CafeF
