MARKET INSIGHTS_15122022

MARKET PULSE

The VN-Index closed the trading session forming a “White Candle” trading pattern. Trading volume decreased and was below the 20-day average. A price increase with decreasing volume is not a good technical signal.

Key points to note: (i) The current market support is the 1,015-point area and further support is at the 970-point price area. (ii) The trading market is repeating the April 2020 pattern. If history repeats itself, this is a stock accumulation phase and a correction is also necessary. (iii) Cash flow is still circulating well and is highly differentiated.

According to the “Price Action” analysis method for VN30, we have 10 codes giving buy signals, 09 codes giving sell signals, and 11 codes giving sideways signals. VPB, VCB, MWG, VIB, VJC, GVR… are showing positive signals.

According to quantitative statistics, with today’s pattern, in the next trading session, the VN-Index has a 49% probability of increasing and a 60% probability of the closing price being higher than the opening price. Statistics show that the index will decrease in tomorrow’s trading session. Resistance is 1,100 points. Support is 1,015 points. Note: Tomorrow is the rebalancing day for ETF funds.

Intraday Stock Support and Resistance (EOD)

Stocks with a significant surge in trading volume during the day

Watchlist of stocks for tomorrow

Intraday Chart:

• FED raises interest rates by 50 basis points;
• The SBV (State Bank of Vietnam) started buying USD today to curb the dollar’s decline, the supply of VND will increase, and liquidity will ease;

US Stock Market: The rise of defensive stocks is not a good sign. Stock indices often perform negatively after the FED raises interest rates, so it is likely that the indices will correct downwards tonight; however, for now, we expect the indices to maintain their support levels around the sideways trading area as in the previous period.

Investors can download the full report via the following link:

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