Investment Comments
BOS Securities: Technically, VN-Index fell sharply during the session, partially recovered and closed above the support level of the bullish pattern from the end of last year, showing that bottom-fishing demand has been somewhat activated, especially when looking at liquidity.
However, the MACD indicator cut below the signal line, indicating that the selling intensity is increasing and the downtrend has not ended. Therefore, the market is forecasted to not escape the downtrend. Investors are recommended to continue to keep a high cash ratio and not participate in bottom fishing.
VCBS Securities: From a technical perspective, selling pressure near the end of the session caused the VN-Index to form a red candlestick below the old bottom area. Indicators on both daily and hourly charts are pointing down negatively, indicating that selling pressure may still continue. In a more positive scenario, the VN-Index will correct in the form of a flat wave and the decline on October 18 will be considered a SOW session.
VCBS recommends that investors do not abuse leverage, patiently observe market developments in the coming sessions and limit early bottom-fishing disbursements at this time, while adhering to investment discipline and reducing the proportion of stocks that have fallen below the support zone after a series of three recent declines.
Rong Viet Securities: The market continued to decline and was in an oversold state when the VN-Index fell below the MA(200) line, at 1,111 points. However, the market also made efforts to support and narrow the decline at the end of the trading session. This move could help the market temporarily stabilize and recover to retest the area around the MA(200).
The cash flow signal in this recovery will determine whether the market will fall further or not. Therefore, investors need to observe the supply and demand developments at the MA(200) zone to re-evaluate the market status. Temporarily, it is still necessary to consider keeping the portfolio proportion at a reasonable level to prevent risks.
Stock news
- The economy grew more strongly than expected in the third quarter of 2023, bringing hope that China will meet its growth target for this year. According to information from the National Bureau of Statistics of China, China's GDP grew 4.9% year-on-year in the third quarter, higher than the forecast of 4.6% from economic experts.
Previously, China grew 6.3% in the second quarter and 4.5% in the first quarter. Compared to the previous quarter, China's GDP increased 1.3%, also stronger than the 0.9% forecast by economic experts. GDP in the second quarter of 2023 increased 0.8% compared to the previous quarter.
- In the latest quarterly survey by the Wall Street Journal, economists and business leaders lowered their chances of a U.S. recession next year, from a median of 54% in July to a more optimistic 48%. This is the first time they have placed the probability below 50% since the middle of last year. The optimism is fueled by three main factors: continued decline in inflation, the Fed has completed its rate hikes, a strong labor market and economic growth that has exceeded expectations .
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