The stock market is going through a particularly difficult period when it has continuously declined sharply in a short period of time. VN-Index has lost more than 100 points in 4 trading sessions, retreating to around 1,646 points. Liquidity did not record an explosion in deep declines, showing that cash flow was not large enough to absorb selling pressure.
From a cash flow perspective, experts say that a decline without an explosive liquidity is often not an extreme settlement session, but it has other potential risks. The market may slide past supporting areas due to lack of supporting demand, instead of massive sell-off.
The 4-session down streak took away about 6.3% of the index, equivalent to nearly 100 points from the 1,740 zone to 1,646 points, showing that the falling speed is faster than the buyers' absorption capacity. When the speed decreases greatly, buyers tend to retreat to lower price areas, creating liquidity gaps in the short term.
A positive scenario will be a decrease in liquidity in sessions of decline and improvement again in recovery sessions, while market rongance will improve. On the contrary, if liquidity continues to flourish as the market decreases and the width remains very bad, this shows that large cash flow may be withdrawing, thereby increasing the risk of a strong "break".
Regarding the market's trading trend in the new week, analysts from DSC Securities Company said that the market will continue to enter a challenging week. Although technical hois may appear at the beginning of the week, with the current weak demand, the possibility of the VN-Index returning to lower price areas such as 1,630 points, even 1,600 points, is possible.
However, investors should not be too pessimistic, especially in the context of the market having deeply discounted and falling into a state of exhaustion in liquidity. The current sharp declines may be the final shakes before the market finds a new balance and recovers.
Experts from Kafi Securities Company recommend that investors should limit chasing in early morning, prioritize observing the cash flow reaction to assess trend sustainability and proactively restructure the portfolio. On the other hand, the 1,680 point area - corresponding to the short-term MA50 that has just been lost - will be an important resistance level that needs to be overcome to improve the short-term trend.
In the current context, it is necessary to prioritize risk management by proactively lowering the leverage ratio and patiently observing. catching the bottom early at this time has many potential risks when selling pressure is still continuing, instead, wait for the signal of price level balance before looking for new disbursement opportunities.
