STOCK MARKET REVIEW FOR THE WEEK OF 15-19/07/2024
During the week of July 15-19, 2024, the VN-Index continued its downward trend, indicating persistent pessimism in the market. Moreover, trading volume remained below the 20-week average, further dampening the index’s recovery prospects.
Additionally, the MACD and Stochastic Oscillator indicators continued their downward trajectory after issuing sell signals, suggesting a high likelihood of further corrections in the coming period.
TECHNICAL ANALYSIS
Trend and Price Oscillation Analysis
VN-Index – Testing the Lower Edge of an Ascending Triangle Pattern
On July 19, 2024, the VN-Index declined, forming a Bearish Engulfing candlestick pattern, while trading volume increased and settled above the 20-day average, reflecting investors’ cautious sentiment.
Furthermore, the VN-Index dipped below the Middle Bollinger Band, and the Stochastic Oscillator issued a sell signal, heading southward, indicating a pessimistic short-term outlook.
Currently, the index is testing the lower edge (corresponding to the 1,254-1,268 point range) of the Ascending Triangle pattern, which also coincides with the 78.6% Fibonacci Retracement level. If the index fails to recover and breaks below this support, the likelihood of a steep decline increases.
HNX-Index – Consistently Testing the 100-day SMA
On July 19, 2024, the HNX-Index declined and repeatedly tested the 100-day SMA, accompanied by erratic trading volume, indicating investors’ unstable sentiment.
Additionally, the index remained below the Middle Bollinger Band, and the MACD indicator issued a sell signal, heading downward toward the zero line, suggesting a less optimistic outlook.
Money Flow Analysis
Fluctuations in Smart Money Flow: The Negative Volume Index for the VN-Index crossed above the 20-day EMA. Consequently, the risk of a sudden downturn (thrust down) has diminished.
Foreign Capital Flow Fluctuations: Foreign investors resumed net selling on July 19, 2024. If this trend persists in the coming sessions, the outlook will turn more pessimistic.
Vietstock Consulting Analysis Team
