The stock market is having a series of relatively peaceful days, with almost no changes in points. Trading movements during the session also only changed at a low amplitude. Liquidity is still quite weak, showing that the phenomenon of supply restriction is still the main driving force supporting the short-term recovery of the market.
With this situation, it is unlikely that there will be a big industry wave, and cash flow will likely continue to rotate into each stock with its own story.
Although demand is not yet confident enough to create a spectacular breakthrough or attract strong cash flow to the market, the recent efforts to balance and maintain a short-term recovery momentum are very commendable.
Accordingly, from a technical perspective, with the good maintenance above the 1,240 point mark last week, the VN-Index's upward momentum is expected to expand and move towards conquering the resistance level of 1,260 points again this week.
Along with the recovery, the continuous net buying movement in the last 6 sessions by foreign investors is very remarkable. Large-cap stocks, especially the VN30 basket in fields such as information technology, consumer goods, retail, banking, etc. are the focus of the net buying.
Reducing short-term supply from foreign investors is a factor supporting the market in the context of weak active buying demand. The return of foreign net buying will have a positive impact on the general market sentiment, while creating conditions for a prolonged recovery.
Analysts say that for the market to go further and create an upward wave, strong cash flow is always needed, big players must enter the game, and expectations must gradually increase. This is exactly what is lacking when the market is in an information valley.
The "blood change" of cash flow from small-cap stocks such as technology and insurance and flowing back into large-cap stocks such as banking, securities, steel, and real estate will be a necessary factor, creating the basis for expectations of a strong growth wave in the future.
There is only 1 month left until the end of 2024 with many unpredictable fluctuations. The market grew about 100 points last year, including many strong fluctuations during the year.
Market developments during the year were not as many investors expected; in general, investors still expect the market to trade more excitedly and grow more stably in the last month of the year.
The first concern is still macroeconomic stability in the context of the global economy next year forecast to have many unpredictable fluctuations. There will be many unexpected variables happening next year, investors can only wait and react, it is difficult to predict.
With the current low supply situation, experts predict that the stock market can extend its recovery momentum and move up to the 1,265 - 1,270 point range.
However, investors need to be cautious with the risk that the market will fluctuate more strongly because demand has not improved significantly.
Investors can continue to expect the market to increase, but should limit chasing and avoid overbought conditions when the market is in the resistance zone. To limit risks, investors should only participate in corrections.
