After a series of deep declines and gradually losing important support levels, the stock market last week began trading with caution.
The rebound signal from the strong psychological and technical support zone around 1,200 points helped VN-Index successfully "change color" and increase points last week.
Large-cap stocks in the VN30 basket and leading stocks such as banks, securities, real estate, and materials increased positively when receiving the attention of cash flow in the recovery sessions of the week and played a supporting role, leading the upward movement of the general market.
Investor sentiment was thus relieved and improved, especially in the last 3 trading sessions of the week, with the expectation that the recovery scenario will continue.
Although the bottom-fishing demand around the 1,200-point support zone is quite strong, liquidity last week was still below the 20-session average. Therefore, liquidity is still a factor that needs to be monitored and from a technical perspective, the increase of VN-Index is being assessed as a technical recovery from the support zone.
Some analysts are concerned that this recovery is likely to be technical and unlikely to last long enough to create a safe short-term profit-taking opportunity.
In addition, many stocks have broken the medium-term uptrend, so the bottoming process may take more time. Therefore, the risk of VN-Index correcting back to the support zone of 1,200 points still exists.
However, if there is strong cash flow activation in large-cap stocks and active demand improves this week, the impact of pulling up the index will be easier and create more confidence for short-term transactions.
With the signal of foreign selling momentum gradually decreasing and possibly reversing to buy again, the market tends to slow down, accumulate on the recovery momentum to shake off short-term profit-taking pressure and seek consensus on the expectation of increasing points.
Some experts also agree that the market can continue to recover in the coming sessions. Overall, the VN-Index has recovered well from the 1,200-point support zone, but it cannot be confirmed that this is the bottom of the market, especially when it is not accompanied by a strong increase in liquidity.
The market is expected to continue its excitement in the new week, the index may reach 1,240 points, then adjust to 1,220 points to form a second bottom before entering a new uptrend.
It is expected that no industry group will be able to lead the market, instead, stocks with their own stories will become the focus.
This is an opportunity for investors to screen and bet on potential opportunities from now until the end of the year. Investors should focus on long-term stocks with good fundamentals and positive business prospects, and consider disbursing when the market shows clear signs of recovery and trading volume increases strongly.
