Vietstock Weekly 22-26/04/2024: Downswing Risks Continue To Escalate

The VN-Index suffered a dismal trading week, plunging over 100 points and breaching the 200-week SMA, reflecting increased pessimism. The Stochastic Oscillator flashed a sell signal in the overbought zone, indicating a potential short-term correction should the indicator exit the region.


Stock Market Review April 15-19, 2024

During the week of April 15-19, 2024, the VN-Index experienced a highly negative trading week, dropping by more than 100 points and crossing below the SMA 200-week line, indicating an increasingly bearish outlook.

The Stochastic Oscillator indicator has given sell signals in overbought territory, suggesting that a short-term correction will occur in the near future if the indicator falls out of this zone.

Technical Analysis

Trend Analysis and Price Oscillations

VN-Index – Emerging Falling Window Candlestick Pattern

On the trading day of April 19, 2024, the VN-Index lost points and formed a Falling Window candlestick pattern. It continued to track the Lower Band, while Bollinger Bands continued to expand, demonstrating that the correction has not yet ended.

Additionally, trading volume increased and surpassed the 20-session average, indicating persistent pessimistic investor sentiment.

On the other hand, the VN-Index is retesting the Fibonacci Projection 38.2% level (around 1,160-1,175 points) while the ADX remains in the neutral zone (20

HNX-Index – Three Black Candles Candlestick Pattern Emerges

On April 19, 2024, the HNX-Index continued its downward trend for the fourth day, forming a Three Black Candles candlestick pattern after crossing and falling below the SMA 200-day line, suggesting a negative outlook.

Furthermore, trading volume increased and exceeded the 20-session average, while MACD remained bearish and below 0 after giving a sell signal, indicating that the correction scenario is not over yet.

Cash Flow Analysis

Smart Money Flow Movement: The Negative Volume Index indicator for the VN-Index has crossed below the EMA 20-day line. Therefore, the risk of a sudden downturn (thrust down) will increase.

Foreign Cash Flow Movement: Foreign investors returned to net buying on April 19, 2024. If foreign investors continue this action in the coming sessions, the situation will become less bearish.

Technical Analysis Department, Vietstock Advisory Office

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