MARKET INSIGHTS_05072022

MARKET PULSE

VN-Index closed the trading session forming a “Long Black Candle” pattern. Trading volume increased and returned to the 20-day average. Price decrease with increased volume is not a good technical signal.

Key points to note: (i) Regarding the pattern, VN-Index is retesting the 1,150-point support. (ii) Selling pressure is concentrated in high-performing stock groups in June. This seems similar to the April and May period. Thus, the market may form a bottom when these currently sold-off groups stop declining. This stock group will start to fall to strong support levels in 1-2 more trading sessions, and investors should observe trading to determine the index’s main trend.

According to the “Price Action” analysis method for VN30, we have 09 codes showing buy signals, 08 codes showing sell signals, and 13 codes showing sideways signals. The banking sector had a negative trading day.

According to quantitative statistics, with today’s pattern, the VN-Index has a 48% probability of increasing in the next trading session and a 57.14% probability of closing higher than its opening price. Statistics suggest the index will decline in tomorrow’s trading session. However, we believe that bottom-fishing demand will emerge in tomorrow’s session. Resistance is at 1,250 points and support is at 1,150 points.

Stock Support and Resistance End of Day (EOD)

Stocks with ??t bi?n ( ??t bi?n means sudden increase/breakout, but in context of volume, it means abnormal/spike in volume) in trading volume today

Watchlist for tomorrow’s stocks

Intraday Chart:

• Logistics costs begin to cool down;
• GS estimates US corporate EPS and US GDP;

US Stock Market: In the short term, the sharp decline in yields creates a sentiment that the economy is about to enter a recession and commodity prices will fall. However, as previously shared, the economy typically lags the stock market by an average of 116 days. The US stock market will be closed for Independence Day tonight. The index is forecast to continue rising after trading resumes.

Investors can download the full report via the link below:

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