Stock market keeps recovering

Yesterday's rally (November 21) recorded a breakout as soon as the market opened, but it seems that selling pressure is always present, making it difficult for the market to have a strong upward momentum.

Liquidity has dropped quite sharply, even below the 20-session average, showing that investors are still quite cautious.

According to statistics, among the industry groups that attracted good demand, steel and oil and gas stocks were the two groups with the best growth, approximately 1.3%.

Besides, active buying liquidity also found its way to more than 20 large-cap stocks, creating a positive premise to help the market maintain its accumulation rhythm.

However, experts still maintain an optimistic view on the market's recovery signals. However, VN-Index cannot break out immediately, the index needs to accumulate and move sideways for a while after the sharp decline last weekend, then gradually regain the bullish signal.

Experts from SHS Securities Company gave their analytical opinion that the market continued to recover positively after a strong decline, VN-Index increased by 6.80 points, closing at 1,110.46 points, remaining above the support zone of 1,100 points and heading towards the MA200 average price line.

The market is still forming a balance zone for accumulation.

From a short-term perspective, with the positive recovery state being maintained, we believe that the new balance area for accumulation is likely to be in the 1,100-1,150 point range. However, this recovery is technical in nature with the growth momentum not really sustainable, SHS experts commented.

Experts from Yuanta Vietnam Securities Company believe that the market will likely continue to increase in the next session and the VN-Index may challenge the 200- and 50-session moving averages in the coming sessions.

At the same time, the market may still experience corrections as profit-taking pressure increases in mid- and small-cap stocks, which have increased sharply in recent times.

In particular, the main indexes rose into the resistance zone of the moving averages.

In addition, the sentiment indicator continues to move sideways, showing that investors are still cautious with the current situation, not to mention that liquidity is still low, showing that investors are not ready to return to the market in strong uptrends and the tug-of-war situation may continue in the coming trading sessions.

VietCap Securities Company predicts that in today's trading session (November 22), VN-Index may continue to test the resistance of MA10 and MA200 at 1,111-1,115 points.

But if liquidity continues to show a downward trend, it is likely that the VN-Index will reverse and decline from this resistance level later.

In this scenario, the index may need to retest the 20-day MA support at 1,085 points. In case this support is violated, the recovery that started in late October will officially end.

Source