MARKET REVIEW FOR THE WEEK OF 21-25/10/2024
During the week of 21-25/10/2024, the VN-Index ended the week with a significant decline, forming a Black Marubozu candlestick pattern while breaking below the Middle line of the Bollinger Bands. This indicates a growing pessimism in the market.
On the other hand, trading volume remained below the 20-day average, suggesting that investor caution continues to increase.
Currently, the MACD indicator is heading downwards after issuing a sell signal. This suggests that the risk of a short-term correction remains.
TECHNICAL ANALYSIS
Trend and Price Oscillation Analysis
VN-Index – Breaking Down from the Neckline of a Double Top Pattern
On 25/10/2024, the VN-Index declined, forming a candlestick pattern resembling a Black Marubozu, and continued to hug the Lower Band of the Bollinger Bands, indicating a rather pessimistic short-term outlook.
Additionally, the index broke down below the neckline of a Double Top pattern, while the MACD continued its downward trajectory and remained below the zero line after issuing a sell signal. Therefore, the correction scenario is likely to persist, and the potential price target for the VN-Index is the 1,220-1,235 point region.
HNX-Index – Stochastic Oscillator Deep in Oversold Territory
On 25/10/2024, the HNX-Index witnessed a slight decline, forming a candlestick pattern similar to a Doji, while trading volume remained below the 20-day average, indicating investor indecision.
Meanwhile, the index is testing the old lows of April and August 2024 (corresponding to the 220-224 point region) while the Stochastic Oscillator has ventured deep into oversold territory. If the indicator provides a buy signal and manages to climb out of this region, the HNX-Index could be poised for a recovery in the coming period.
Money Flow Analysis
Smart Money Flow Variation: The Negative Volume Index indicator for the VN-Index has crossed below the EMA 20 line. If this condition persists in the next session, the risk of a sudden thrust down will increase.
Foreign Money Flow Variation: Foreign investors continued to sell on 25/10/2024. If foreign investors maintain this action in the coming sessions, the situation will become even more pessimistic.
Technical Analysis Department, Vietstock Consulting
The Wolf of Wall Street: Brokers’ Prop Trading Losses Mount in Market Rout
The proprietary trading arms of securities companies recorded net selling with a value of VND 94 billion across the entire market.
The Beat of the Market on 10/28: Indecision Looms, Telecom Services Shine Brightly
At the end of the trading session, the VN-Index rose 2.05 points (+0.16%) to 1,254.77, while the HNX-Index dipped 0.03 points (-0.01%) to 224.59. The market breadth tilted towards gainers with 389 advancers and 283 decliners. The large-cap stocks also witnessed a sea of green, as reflected in the VN30-Index, with 15 gainers, 9 losers, and 6 stocks holding steady.
VN-Index Retreat: Strategizing for the Savvy Investor
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With an air of cautious optimism, most securities companies are advising investors to approach the upcoming trading session with prudence. While the market sentiment is generally positive, it’s important to remain vigilant and make well-informed decisions.
Tomorrow’s Stock Market Outlook: Anticipating Real Estate and Banking Stocks to Lead the Charge
Although the VN-Index fell during the October 30th session, it was a positive day for many bank and real estate stocks, which saw their share prices rise.
The Foreigners’ Sell-Off: Unraveling the 1.3 Trillion VND Trade in Blue-Chip Stocks
The foreign transactions went against the positive trend of the market session, as they offloaded a net sell value of VND 1,631 billion across the market.
