Stock Market Perspective Week 11-15/3: VN-Index adjusts back within the channel of 1,150 - 1,250 points
New buying positions are in a good position to explore and watch for strong discounts to find opportunities for target stocks, especially those with good fundamentals and valuations that still have room.
In the past week, the market received a lot of information such as: Upgrading Vietnam - Australia relations to the highest level - Comprehensive Strategic Partnership after more than 50 years of establishing diplomatic relations between the two countries; On March 7, 2024, the European Central Bank (ECB) decided to keep interest rates unchanged, while also stating that inflation is decreasing faster than predicted a few months ago; Ho Chi Minh City Stock Exchange (HoSE) said that from March 4, 2024 to March 8, 2024, it will convert to the new KRX information technology system so that from March 11, 2024 to March 15, 2024, securities companies will test the entry of trading orders, ensuring operations like a normal trading day.
During the week with rotating fluctuations, very high liquidity, and at the same time with positive supporting news from the KRX system, the group of securities stocks had outstanding price increases, very sudden liquidity with many codes increasing very strongly such as AGR (+16.02%), AGR (+14.54%), DSC (+13.27%), CTS (+9.77%), PSI (+7.95%)..., in addition to codes under adjustment pressure, especially in the last session of the week such as SSI (-1.47%), BSI (-1.03%)...
From a technical perspective, the VN-Index closed at the lowest level of the session and broke through the MA10 line, causing investors to worry that the correction will continue. However, the short-term uptrend has not been confirmed to be violated when the important and strong support levels at 1,230 points are still maintained. Of course, the strong correction of the market at the end of the week will challenge the short-term growth momentum. Quantitative indicators also show that the cooling of cash flow to date is not considered dangerous and has not shown a massive withdrawal of cash flow from the market.
Last Friday's session could be considered a retest of the 1,250-point threshold and could not confirm the end of the short-term uptrend if the VN-Index recovers soon and surpasses the 1,250-point threshold in the coming sessions. In this scenario, the VN-Index is still likely to have another uptrend towards the strong resistance level of 1,300 points.
Even in this scenario, SHS Securities experts do not highly appreciate the possibility of VN-Index forming a strong uptrend, but the possibility that VN-Index will correct back within the 1,150 - 1,250 point channel after ending the euphoria, because the accumulation foundation that is the basis for the uptrend is not reliable enough.
According to many experts, with the current correction, new buying positions are in a good position to explore and watch for strong discounts to find opportunities for target stocks, especially those with good fundamentals and valuations that still have room. Positions holding a high proportion of stocks should pay attention to risk management activities in case the market continues to fall and violate short-term support levels. Accordingly, priority should be given to reducing the proportion of weak stocks with thin short-term technical growth potential or those that will soon violate the stop-loss threshold to allocate to other potential stocks to take advantage of the current correction.
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