STOCK MARKET REVIEW FOR WEEK 1-5/7/2024
During the week of 1-5/7/2024, the VN-Index impressively surged, erasing all previous downward pressure. If this upward momentum continues next week, the index will have the opportunity to retest the March 2024 high, which corresponds to the 1,285-1,295 point region.
Additionally, trading volume needs to be maintained above the 20-week average to ensure the sustainability of the upward trend.
TECHNICAL ANALYSIS
Price Trend and Oscillation Analysis
VN-Index – Exhibiting a candle pattern resembling a High Wave Candle
On 05/07/2024, the VN-Index rose and formed a candle pattern similar to a High Wave Candle, with volume consistently below the 20-day average in recent sessions, indicating investors’ cautious sentiment.
However, the index is positioned above the Fibonacci Projection 38.2% level (corresponding to the 1,265-1,275 point region), while the MACD indicator has triggered a buy signal and is above zero, suggesting a high probability of maintaining the recovery scenario. This zone should act as solid support for the VN-Index in the short term.
HNX-Index – Remaining below the Middle Bollinger Band
On 05/07/2024, the HNX-Index witnessed a slight increase but stayed below the Middle Bollinger Band, with volume consistently below the 20-day average in recent sessions, reflecting investors’ cautious attitude.
Nevertheless, the Stochastic Oscillator has exited the oversold zone and generated a buy signal, indicating that the recovery prospect remains intact. Currently, the HNX-Index continues to find support from the 50-day and 100-day SMA. If liquidity improves in the upcoming sessions, the recovery trend will be more sustainable.
Money Flow Analysis
Fluctuation of Smart Money Flow: The Negative Volume Index of the VN-Index has crossed above and is now resting on the 20-day EMA. Consequently, the risk of a sudden downturn (thrust down) will diminish.
Foreign Capital Flow Variation: Foreign investors continued to net sell on 05/07/2024. If this trend persists in the coming sessions, the situation will turn more pessimistic.
Technical Analysis Department, Vietstock Consulting
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