At the close of the August 5 session, the VN-Index fell by 48.53 points (-3.92%) to 1,188.07. HoSE’s liquidity improved slightly, with a matching value of VND 21,260 billion. Notably, foreign investors aggressively net sold, with a net selling value of up to VND 749 billion.
Continuing downward momentum
BSC Securities: Opening with a large negative gap, the VN-Index traded below the 1,220 threshold and fell sharply to close at 1,188.07, a decrease of nearly 50 points in the August 5 session. In the next trading sessions, the market may continue its downward momentum towards the 1,160 – 1,165 range. Investors are advised to trade cautiously.
Margin call pressure
KBSV Securities: The VN-Index fell sharply and formed a “Marubozu” candle pattern, accompanied by high liquidity, indicating a complete dominance of sellers. Margin call pressure during the session, combined with unfavorable macroeconomic factors, is likely to continue exerting downward pressure on the index.
Short-term recovery to retest 1,200 resistance
SHS Securities: The short-term trend of the VN-Index remains negative, with the failure to hold the strong psychological support area around 1,200, which is also the highest price level of 2018 and the current one-year average price. Currently, with strong selling pressure in the August 5 session, the index is in a short-term oversold condition and may recover to retest the resistance area around 1,200, which is also the current 200-session average price.
Given the current pressure, uncertain global developments, and an increase in short-term forced liquidation, if the recovery attempt to retest the 1,200 area is unsuccessful, the VN-Index may face the risk of further correction towards the 1,150 – 1,170 range in the short term, corresponding to the lowest price level of April 2024 and the current 120-week and 240-week average prices.
Potential for short-term recovery
TPS Securities: The VN-Index formed a strong selling candle with high liquidity. This continues to be a sharp decline, dragging the index below the 1,200 level. This erases the previous session’s recovery effort. In the following sessions, the VN-Index is likely to witness a short-term recovery to retest this resistance area. If bottom-fishing demand does not emerge at this level, the market will retreat to the 1,180 area.
Possible short-term rebound
Yuanta Securities: The market may soon witness a short-term rebound in the next session. With the downward momentum, the VN-Index could also retest the April low with a closing price of 1,175. Additionally, many stocks and indexes have entered the oversold zone, and the projected P/E ratio of the VN-Index has dropped below 11 times, so Yuanta expects the market to rebound soon in the next few sessions.