Stock liquidity fluctuates, short-term risks remain

With selling pressure somewhat weakening and demand increasing strongly at the end of the trading session, the VN-Index avoided a deep decline in yesterday's trading session (November 7).

However, with the downtrend still playing a dominant role, VN-Index is likely to soon face correction pressure around the notable resistance level of 1,095 (+/-10) points.

Yesterday's liquidity also decreased compared to the previous session, and there was no sell-off trend. That is a positive signal for the market. This correction is still likely to pull the VN-Index to the support zone of 1,040-1,050 points, but it does not form a new downtrend.

Liquidity may still be an issue that needs attention as bottom-fishing demand has not been assessed as strong enough, showing that the short-term supply reduction foundation is still the main driving force helping the market recover last week.

The resistance level of 1,100 points is still above, which will soon put pressure on the upcoming recovery process of VN-Index. The chance of breaking out of this resistance level is low if liquidity does not improve significantly in the process of returning to the old short-term peak.

The stocks that led the wave in the last two sessions of increase were recorded in the mid-cap group, including construction materials (steel), securities, seafood, retail, real estate, and chemicals. Accordingly, these groups may be favored by short-term cash flow and the opportunity to surf will be more prominent in the general market.

Large-cap stocks are facing obstacles as they have not yet reached a consensus to support the market's growth. When this group has not yet created a short-term bottom, it is very difficult to accompany and create a sustainable support for the market index.

Experts still expect that the positive signals in the mid-week sessions are signs that the VN-Index has bottomed out and is in the process of retesting the bottom to break out and increase points.

SHS Securities Company commented that VN-Index adjusted when approaching the MA20 price zone (1,090 points) with decreasing liquidity.

The market is still in a short-term recovery phase after the VN-Index fell sharply to the bottom since the beginning of 2023 (around 1,020 points) and yesterday's session did not affect this trend.

Experts from SHS Securities Company believe that the market is fully capable of recovering in the coming sessions to reach the resistance level at 1,100 points. However, since this is only a technical recovery in the process of finding a new balance area, the risk of VN-Index falling again is entirely possible and difficult to predict.

From their perspective, experts from Yuanta Vietnam Securities Company also expressed the view that the market may continue to fluctuate around the 20-session moving average of the VN-Index in the next session. At the same time, the market shows signs of entering a short-term accumulation phase, so it may continue to move sideways around the current price range with low liquidity.

Currently, the VN-Index is facing the resistance zone of 1,083-1,100 points. In addition, the short-term sentiment indicator increased slightly, showing that investors are still not too excited about the current market developments.

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