VN-Index is still in an uptrend

Investment Comments

Asean Securities (Aseansc) : The market recorded a relatively strong shake after the explosive session. Market liquidity continuously improved and remained at a level much higher than the 20-session average, reflecting the large cash flow starting to enter the market .

Aseansc believes that the market is still in an uptrend, however, the VN-Index is likely to be under pressure to adjust to around 1,100 points in the next few sessions to absorb short-term profit-taking stocks. Therefore, Aseansc maintains the recommendation to focus on monitoring the market's movements, investors should limit chasing purchases, and take advantage of fluctuations in the VN-Index to restructure their portfolios.

Viecombank Securities (VCBS): From a technical perspective, selling pressure at the end of the afternoon session caused the VN-Index to be unable to maintain a good upward momentum, forming an Inverted Hammer candlestick. Looking at the hourly chart, the two indicators MACD and RSI were at a high level, forming the first peak and starting to weaken. With the current developments, the VN-Index may still have some fluctuations during the session, but the probability of a short-term correction has increased.

VCBS maintains its view, recommending that investors proactively plan short-term trading, consider selling a portion of the stocks in their accounts and then wait to buy them back during the downward corrections during the session or maintain their purchasing power to look for opportunities to disburse T+ short-term trading if the market experiences a correction to retest the nearest support zone around 1,080 - 1,085 points.

Saigon - Hanoi Securities (SHS): In the short term, the strong recovery momentum brought the VN-Index back above the 1,100 point threshold and escaped the drag of the old accumulation base. However, this recovery is technical because the VN-Index has lost its uptrend and the deep decline makes the upward momentum strong but not sustainable.

The market can still continue its recovery trend but will soon encounter short-term resistance at 1,150 points. SHS believes that VN-Index will soon mobilize short-term surfing investment to create a new medium-term accumulation base.

The market is showing a positive recovery trend after a deep decline. In the short term, although the VN-Index can still continue its upward trend, any short-term recovery efforts are technical and contain risks. Medium and long-term investors should continue to hold their portfolios and wait for opportunities to disburse more when the market stabilizes again.

Stock news

- China deflation, recovery still fragile. China returned to deflation in October 2023, showing that the country of one billion people is struggling to boost growth through domestic demand. The consumer price index (CPI) fell 0.2% in October 2023 after fluctuating near 0% in the previous two months. The producer price index (PPI) fell 2.6%, marking the 13th consecutive month of decline. Previously, experts predicted a decrease of 2.7%.

- IMF: ECB needs to keep interest rates above 4% to "neutralize" inflation. IMF European Department Director Alfred Kammer warned the ECB not to cut interest rates too soon because that would force the organization to implement more costly policy tightening later. The International Monetary Fund (IMF) said that rapid wage growth in the Eurozone could push inflation to continue to rise. Therefore, the European Central Bank (ECB) should keep interest rates around record highs next year to "ease" price pressures .

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