Order matching liquidity remains low in the stock market

Despite the weak cash flow and the resistance of large stocks such as VIC and VCB, yesterday the VN-Index still increased well and regained the 1,135 point mark, with a vibrant performance in the securities group. Green spread across many industry groups, but like the session at the end of last week, the order matching liquidity remained low, yesterday even slightly decreased compared to the session at the end of last week.

The last three uptrend sessions all had lower trading volume and were lower than the 20-session average. This signal shows that the uptrend sessions have elements of technical recovery rather than signals confirming a reversal.

The stock market has experienced a sharp decline of nearly 120 points, equivalent to nearly 10% in just over the past month, and many stocks have returned to attractive price levels to activate bottom-fishing cash flow.

However, in reality, the cash flow entering the market is becoming more and more cautious with liquidity remaining at just over VND10,000 billion in recent trading sessions. This shows that the bottoming signals are still unclear and the VN-Index still needs to accumulate to continue moving up.

Experts say new developments in the currency market have reduced the excitement of cash flow into the stock market, causing cautious buying power and market liquidity to gradually decrease since the end of September 2023.

On an unfavorable foundation, stocks that strongly attract speculative cash flows to push prices up, such as real estate and securities, have fallen sharply. Net selling pressure from foreign investors, at the same time putting pressure on large-cap stocks, has caused the VN-Index to fall sharply in the past month.

Experts from Tan Viet Securities Company - TVSI commented that the VN-Index continued to close the session with a Bullish Engufling candlestick pattern with the highest closing price of the day. At the same time, it surpassed the highest recovery value set in the previous week, signaling that the recovery momentum will continue to last. However, the recovery with low liquidity shows the negative sentiment of investors and also shows that the recovery momentum is not sustainable.

Overall, the index has formed a fairly positive short-term support zone, which is the value zone around the 200-session average threshold, and currently needs a momentum breakout session to confirm the short-term bottom escape and continue the recovery momentum.

It is expected that in the remaining sessions, the index may have an explosive session and aim to regain the previous short-term accumulation zone around the 1,150-point mark. In today's trading session, with the real estate - industrial park group recovering first and diverging again today, VN-Index is expected to fluctuate in the morning session but is expected to continue its upward momentum towards the end of the session, TVSI commented.

Experts from VietCap Securities Company predict that VN-Index will continue to show increasing efforts to retest the resistance at 1,137-1,143 points (MA10, EMA200). If buying power does not improve further at high prices, causing VN-Index to gradually narrow its increase and close below 1,137 points, the index may fall again to retest the support at 1,100-1,110 (MA200) once again. On the contrary, if buying power improves and helps VN-Index close above 1,143 points, the index will signal continued recovery, heading towards the resistance of the MA100 line at 1,160 points.

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