In the trading session on May 20, selling pressure continued to occur widely, causing the index to drop to the 1,860 point mark at one point. However, the simultaneous appearance of bottom-fishing demand helped VN-Index quickly regain momentum and even close the session with a slight increase.
After a "glunk" trading session of VN-Index when at one point losing more than 50 points and then suddenly recovering strongly towards the end of the session, it raises the question of whether large cash flow is returning to "gather goods" or the bull trap risk is still present?
According to the assessment of analysts from TPS Securities Company (CTCK), the VN-Index is still maintaining its upward trend after the May 20 session, and is expected to increase inertia into the May 21 trading session.
In a more positive case, TPS believes that the index may overcome the resistance of 1. 925 points thanks to a successful supply test. In addition, the support zone around 1. 860 points may continue to play a psychological support role for the market in the short term.
TPS advises investors to prioritize pursuing a strategy of holding and maintaining a medium cash ratio to cope with the fluctuations of the general market. New buying activities should only be carried out selectively in case the index successfully tests the immediate resistance (which is the 1. 925 point threshold).
Rong Viet Securities Company (VDSC) assessed that the deep reversal with a range of up to 50 points shows that the efforts to support the market in this session are not clear and red is overwhelming. Order matching liquidity increased compared to the previous session, also reflecting the psychology of increasing selling pressure from investors when the market encounters difficulties in the resistance zone.
Although the current lackluster signal is reducing the possibility of expanding the market's upward trend, VDSC temporarily believes that the market is still making efforts to maintain above the support level of 1,910 points.
VDSC recommends that investors slow down and observe the supply and demand movements to assess the selling pressure of the market, as well as the support efforts of the 1,910 point zone. In this period, investors should temporarily postpone increasing the proportion of stocks that have increased sharply, and consider reducing the portfolio proportion when stocks experience weak technical recovery to optimize risk management. If the portfolio proportion is at a safe level, investors can consider a quick adjustment after the recent price increase in some stocks to buy short-term.
Before the concerns of many investors about whether the market diễn biến in yesterday's session was a move to collect goods or just a distribution of stuck goods, Mr. Luong Duy Phuoc, Kafi Securities Market Research Director, said that the market is currently recording clear bottom-fishing demand, but to affirm that it is a large cash flow accumulated for a new cycle, more confirmation signals are needed.
A positive scenario will occur when the general index in the coming sessions maintains a recovery price range, liquidity does not increase sharply in the downtrends, market breadth improves and cash flow tends to shift to stock groups with good accumulation foundations.
The risk scenario is that if VN-Index continues to be mainly pulled by a few large stocks while most other codes weaken, liquidity is maintained at a high level but prices cannot break through, risks for the market will still exist.
The bull trap risk is still present when in the recent session, although VN-Index closed close to the reference level thanks to the support of the pillar group, the market breadth was quite weak with the number of declining stocks overwhelming. Therefore, investors should not only look at the VN-Index's points," this expert stated his opinion.
