MARKET REVIEW FOR THE WEEK OF 12/16/2024 – 12/20/2024
During the week of 12/16/2024 – 12/20/2024, the VN-Index closed on a less optimistic note as it continued to lose points and fell below the Middle Bollinger Band. Moreover, trading volume dropped below the 20-week average, indicating limited participation in the market.
Currently, the MACD indicator is likely to give a sell signal after narrowing the gap with the Signal Line. If this happens in the coming period, the situation of the index will become even more negative.
TECHNICAL ANALYSIS
Trend and Price Oscillation Analysis
VN-Index – Spinning Top Candlestick Pattern Emerges
On 12/20/2024, the VN-Index posted a slight gain and formed a Spinning Top candlestick pattern, while trading volume fluctuated erratically in recent sessions, indicating investors’ unstable sentiment.
Additionally, the Stochastic Oscillator has fallen out of the overbought region after a sell signal emerged, suggesting a heightened risk of a downward adjustment.
HNX-Index – ADX Continues to Weaken
On 12/20/2024, the HNX-Index declined and moved closer to the Middle Band while the Bollinger Bands gradually narrowed (Bollinger Squeeze), and trading volume exceeded the 20-session average, reflecting investors’ diminishing optimism.
Furthermore, the ADX indicator continued to weaken and remained below 20, indicating a very weak trend and suggesting that the back-and-forth movement with alternating up and down sessions is likely to persist in the coming period.
Money Flow Analysis
Smart Money Flow Variation: The Negative Volume Index indicator for the VN-Index dropped below the 20-day EMA. If this condition persists in the next session, the risk of a sudden downturn (thrust down) will increase.
Foreign Capital Flow Variation: Foreign investors continued to sell net during the trading session on 12/20/2024. If foreign investors maintain this action in the coming sessions, the situation will become even more pessimistic.
Technical Analysis Department, Vietstock Consulting
