Stock market recovery faces difficulty at 1,100 point threshold

The "miracle" of the ATC session did not appear in the first trading session of the week and the VN-Index "gave back" all the points gained after the spectacular recovery in the last session of the week.

On November 27, the attempt to overcome the short-term resistance level of 1,100 points was still unsuccessful, although the VN-Index had twice surpassed this resistance level during the ongoing recovery.

Banking stocks continued to increase pressure, causing the VN-Index to return all the points gained in the recovery session last weekend. Market liquidity dropped sharply to the lowest level in about a month. However, the securities stocks group was still the group leading the decline of the entire market. All stocks in the industry on the HOSE lost points with a wide margin.

Although the index has dropped, liquidity is what investors are concerned about. Trading volume yesterday decreased sharply, more than in more than a month (down 34% compared to the average of 20 sessions).

The sharp drop in volume amid a general market decline still shows investors' extreme caution. However, there is no observed selling pressure.

The market has seen continuous reversals, making many investors tired and part of the cash flow from the underlying market has flowed to the derivatives market.

The index may need more time to accumulate and find stronger cash flow. Foreign investors are still net sellers, which is a negative point, creating a lack of confidence among domestic investors. Therefore, regaining foreign investors' confidence is one of the important factors in the journey to find a new uptrend of VN-Index in the coming time.

Experts from VietCap Securities Company predict that in today's trading session, the market may decrease so that VN-Index can retest the nearest support at 1,080-1,085 points. If the force is still weak, VN-Index will likely recover in the afternoon session to test the strength of the buyers.

If the buying force is strong enough to help the index increase in price and liquidity, surpassing the MA5 line at 1,110 points, the market will have more opportunities to return to the uptrend. Conversely, if the buying force shows weak intensity, the VN-Index may move sideways for a few sessions before continuing to decline.

With the prolonged tug-of-war trading, investors should be cautious, as a decline in the VN-Index is still one of the possible scenarios. Experts from KB Securities Vietnam Company commented that the bottom-fishing demand refusing to enter at high prices has caused the VN-Index to have a correction session with low liquidity and the market situation is becoming more negative.

In the scenario where VN-Index loses the support level near 1.07x points, the risk of breaking the short-term bottom zone needs to be taken into account. Investors are recommended to sell down the proportion of positions opened during the early recovery and only reopen buys around the deep support level of 1,000 (+/-15) points.

Sharing the same view, SHS Securities Company also believes that the market's recovery is at risk of ending when the VN-Index has not shown any effort to regain the support of 1,100 points. In the short term, any short-term recovery efforts are technical and contain risks.

For medium and long-term investors, the market is still confirmed to have passed the "downtrend" bottom at 950 points. Although the "uptrend" is currently over, there is a high possibility that the market will enter the accumulation zone again. Therefore, medium and long-term investors can completely wait for the opportunity to disburse more when the market accumulates and stabilizes again.

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