[Market News 12/05/2023] PROFIT-TAKING PRESSURE ON OVERHEATED SMALL-CAP GROUP

The VN-Index closed trading forming a “Black Candle” pattern. Trading volume increased and was above the 20-day average. A price decrease with increased volume is not a good technical signal; however, fundamentally, today was not a negative trading day for the index, although profit-taking pressure on small-cap stocks seems to be increasing after a hot rally.

?? Vietnam Stock Market:

– The rally was led by stocks such as MSH, HPG, DIG, …

– SMC hit the ceiling: the current drawback is that the stock has a Bearish Bat pattern;

– VRE saw strong net buying from foreign investors again;

– DIG shows a potential bearish divergence pattern, warning of a reversal;

– The decline was led by stocks such as GAS, MWG, ANV, VHC,…

– BVH’s target price for wave 5 is around the 40 area;

– VHC has support at the 60 price level & no sell signal has appeared yet;

– Speculative cash flow is concentrated in low-market-price stocks such as FIT, TSC, SAM,…

?? US Stock Market:

Tonight’s forecast: Nasdaq will gain, S&P 500 will trade sideways, and Dow Jones will decline.

?? Some notes:

– Trend forecast:

We observe that profit-taking pressure on small-cap stocks may continue to increase tomorrow, and this group could undergo a correction. Additionally, the steel sector shows signs of forming a new upward price wave;

– Economic and macroeconomic news:

The State Bank of Vietnam announced it would flexibly manage monetary policy tools to contribute to inflation control, support economic growth, and stabilize the monetary and foreign exchange markets.

?? Recommended stocks: none.

?? Forecast for May 12, 2023: Statistics show the index traded indecisively between gains and losses, with a higher closing price.

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Source: AAS RESEARCH