Optimistic expectations about the market in August did not come true, instead there was a strong and unexpected selling pressure that caused the market to fall very deeply in the first session of the new month. No industry group increased in points, a bright red color dyed the whole market. Besides, liquidity increased, showing that anxiety has appeared.
Currently, the strong resistance area of VN-Index is 1,255 points and the support is the lowest price of 1,218.7 points on July 24, 2024. If this short-term support area cannot be maintained in the coming sessions, the index is at risk of continuing to adjust to the strong psychological support price area around 1,200 points, this is also the highest price area in 2018, as well as the average price. average 1 year and 5 years currently.
In the opinion of many experts, the reason the market dropped sharply comes from the negative psychology of investors even though there is not much bad information. The "domino" effect was also triggered when a psychological sell-off created a wave of mortgage selling throughout the market . This shows the current fragility of the market.
Experts from KB Vietnam Securities Company analyzed that the VN-Index formed a "Bearish engulfing" candlestick pattern with sudden liquidity, negating almost all of the gains in the previous recovery period and shows quite strong distribution pressure. It is likely that the index will continue to break the short-term bottom before having a chance to enter a recovery period at the near support zone. After selling down the holding position to a low level during the recent recovery period, investors can make exploratory purchases to return to a portion of the trading proportion at the low price range.
The market experienced a trading session that negated the recovery momentum of this week and officially returned to correction period number 3. The shaking signal was predicted by the state of strength differentiation across a wide range of industry groups in the market. recent sessions. The positive point is increased liquidity, but whether this is just panic buying or a sustainable buying zone will need more data to evaluate. Therefore, investors should lower the proportion, because the market bottoming failed and temporarily observe, experts from Asean Securities Company stated their opinion.
Vietcombank Securities Company (VCBS) said that indicators reflecting the momentum of VN-Index are weakening. The sudden weakening of demand, causing the market to slide, is also a sign of the indifference of bottom-fishing cash flow compared to previous sessions.
With this inertia, VCBS forecasts that the market may continue to adjust with the nearest support in the area of 1,200-1,210 points. This company recommends that investors keep calm, restructure their portfolios, remove codes that violate the stop loss threshold and only maintain codes that maintain the trend and have not violated any trading rules. The current market is relatively weak due to lack of demand, so investors are limited in disbursing new purchases before there are clearer confirmation signals of the general trend.
