VN-Index continued to have a strong decline, pushing the index close to the support level of 1,230 points. However, selling pressure is still very strong and is likely to continue in the next session.
The pressure of USD/VND exchange rate is weighing on the market, causing VN-Index to continue to correct. Racing to sell off stocks with domestic investors, foreign investors net sold nearly 1,000 billion VND on HOSE in the sharp decline on November 14, nearly 5 times higher than the previous session.
Although a technical recovery may appear as the index is deep in the near-term support zone and some momentum indicators have dropped to oversold territory, the VN-Index is still at risk of continuing to be dominated by the short-term downtrend and may head deeper into the support zone.
Strong selling pressure from both domestic and foreign investors is making the market sentiment quite cautious. Technical signals still show a short-term downtrend, and bottom fishing at this time is a risky decision that could lead to losses.
Analysts at VCBS Securities Company believe that with the loss of the 1,240 mark, there is a high probability that the VN-Index may continue to correct to 1,220 before recovering. If demand increases in the coming sessions and the blue-chip group recovers, the market is expected to return to balanced accumulation.
VCBS recommends that investors should consider taking profits from stocks that have reached their short-term targets to ensure profits while the market is still adjusting. In addition, for investors with high risk appetite, they can take advantage of fluctuations to disburse at discounted prices for stocks with strong demand and maintaining a trend opposite to the current VN-Index, but need to implement the stop-loss - take-profit rule to preserve capital and profits.
The cautious view was also given by experts from CSI Securities Company, stating that in the next session, if the threshold of 1,230 points cannot be maintained, there is a high possibility that the index will fall to the support zone of 1,208 points. There is no positive signal yet, and selling pressure is still dominant, so caution is needed in new purchases. The previous exploratory buying position has not brought advantages, so it is necessary to limit the average purchase price down, and even discipline to sell stocks that violate the risk threshold.
