KBSV believes that investors should prioritize defensive strategies, selling to low levels during early recoveries.
VN-Index failed to maintain the recovery momentum of the previous session and recorded a correction right at the beginning of the session on July 25. The market was almost covered in red for most of the trading time due to the lack of support from the large-cap group. At the end of the session, VN-Index closed at 1233.19, down 5.28 points, equivalent to 0.43%. Liquidity during the session remained low and demand at low prices showed signs of slowing down compared to yesterday.
Commenting on the developments in the next session, most securities companies believe that the decline of VN-Index will slow down at the 1,230 zone to find a balance. Investors are advised to prioritize a defensive strategy, selling to a low proportion in early recovery sessions.
Bottom detection at 1,230 points
(BSC Securities)
Today's sharp drop in liquidity shows that market sentiment is still cautious after a deep correction. Currently, VN-Index is still in the process of testing the bottom at 1,230.
The short-term trend is somewhat more negative.
(KBSV Securities)
VN-Index formed a Doji candlestick pattern with a long lower shadow, showing that the trading status is still in a tug-of-war between the two sides, but the active sentiment is somewhat inclined towards the buying side. Although the selling force has weakened with gradually decreasing liquidity, the cash flow to catch the bottom at low prices may appear and bring a recovery opportunity for the index, but the loss of the important support zone around 1.24x makes the short-term trend more negative. Investors are recommended to prioritize a defensive strategy, selling to reduce the proportion to a low level in the early recovery sessions.
Short-term foundation building in area 1,230
(VCBS Securities)
On the daily chart, the general index sticks to the lower border of the Bollinger band and moves around the 1230 area. Although the RSI and MACD indicators are still pointing down, the CMF indicator continuously forms positive divergences, showing that bottom-fishing money has joined in and there is a high probability that the market's decline will slow down at the 1,230 area to find a balance.
On the hourly chart, the Bollinger band is still pointing down, the RSI indicator is pointing up again after creating many small bottoms, so there is a high probability that the VN-Index will build a short-term base at the 1,230 area. However, the risk of intra-session fluctuations should not be completely eliminated when the -DI and ADX lines are still anchored above 25.
VCBS recommends that investors should be cautious at this time, strictly adhere to investment rules and patiently wait for clearer confirmation reversal signals from the market.
Fluctuating in a narrow range with weakening liquidity
(Agriseco Securities)
On the technical chart, VN-Index closed forming a Doji candle with weakened liquidity and bottom-fishing demand appearing, suggesting a short-term trend reversal. However, the supporting demand at the end of the session was not convincing enough and the market will need to find a balance point around 1,230 points before it can reverse the uptrend.
After the RSI indicator retreated to the oversold zone, the selling momentum showed signs of slowing down and technical recovery sessions may appear later. Agriseco Research believes that the market will fluctuate in a narrow range with weakened liquidity, and cash flow will be differentiated according to the business results news of the enterprises being announced.
Continued tug of war
(Yuanta Securities)
The market may continue to fluctuate around the current level in the next session with alternating ups and downs. At the same time, trading volume remains low despite the decline narrowing towards the end of the session, indicating that investors are not yet ready to return to the market. However, low liquidity often occurs at market bottoms, but the market has just reduced selling pressure in one session, which is not yet completely convincing for a reversal signal.
Source: CafeF
