The trading week from July 22 to 26, 2024 was a week of deep decline for VN-Index when the index closed at 1,242.11 points, recording a decrease of 1.8%. The decline dominated 3 out of 5 trading sessions of the week, bringing VN-Index through the key short-term support level of 1,240 - 1,250 points.
However, the bright spot of the general market is that the selling pressure gradually dried up when the VN-Index dropped to the threshold of 1,220 points. The liquidity of the down sessions gradually decreased in both trading volume and value, a signal that VN-Index could create a technical recovery to the price range of 1,250 points and possibly further, around 1,270 points.
With the current developments, it can be said that from a technical perspective, VN-Index is in a short-term downtrend, but there is a possibility of a recovery when selling pressure shows signs of gradually decreasing during weekly down sessions. via.
On the other hand, demand shows signs of increasing in large capitalization codes with positive business results in the second quarter of 2024 such as banking, technology, securities groups and the return of net buying by foreign investors. is a positive sign for the recovery ability of VN-Index.
In the market analysis report, Mr. Nguyen Le Nguyen Vi, Head of Market Strategy Department of DSC Securities Company, said that normally, a widely recognized technical support threshold is easily penetrated like the 1,245 mark - 1,250 points then a sell-off usually occurs. However, the way the market reacted in the last 3 sessions shows that the cash flow "holding" the game does not pay too much attention to that technical milestone to decide to withdraw from the market, they can even take advantage of the psychological threshold. That reason is to "break" the positions of short-term traders.
Experts still maintain confidence in the market outlook in the next 2-3 months based on stable domestic and foreign macroeconomics, the time when the Fed lowers interest rates is approaching, and businesses' profit growth is forecast to continue. continued to improve in the last quarters of the year. Technically, if VN-Index "patches" the 1,250 point mark, a new wave will likely be formed.
Experts from CSI Securities Company believe that the downward momentum shows signs of slowing down, but the upside reversal has not yet been confirmed as the recovery sessions have decreased volume and are at very low levels. The positive point is that VN-Index tested the support threshold of 1,219 points and increased quite well in score.
It is possible that VN-Index is showing signs of recovery with expectations towards the resistance level around 1,255 points (the support level that was broken last week) before accumulating to form a newer trend. At the present time, experts still maintain a cautious stance, need to patiently wait for clearer signals before opening new buying positions and limit selling after the VN-Index has successfully maintained its position. Support threshold 1,219 points.
