MARKET INSIGHTS_30062022

MARKET PULSE

The VN-Index closed the trading session forming a “Long Black Candle” trading pattern. Trading volume decreased slightly and was below the 20-day average. A price decrease with decreasing volume is not an overly negative signal in technical models.

Key points to note: (i) Regarding the pattern, the VN-Index adjusted as it approached the dynamic resistance MA(20). This indicates that pessimistic sentiment is still present at this time. However, today’s effect may be due to the market simultaneously taking profits when encountering resistance and investors limiting purchases of stocks that have achieved a 20% return in the recent recovery. (ii) Selling pressure was not actually too large despite the index falling. There were times when we saw supply dry up, and basically, the late-hour selling effect was mainly due to increased profit-taking demand. (iii) Typically, to start an uptrend, high Beta stocks will be noticed at this time. We should also observe high Beta stocks in the next few sessions after this group can complete a technical pattern with a higher degree of confidence.

According to the “Price Action” analysis method with VN30, we have 03 codes giving buy signals, 12 codes giving sell signals, and 15 codes giving sideways signals. The banking sector had a negative transaction.

According to quantitative statistics, with today’s pattern, in the next trading session, the VN-Index has a 48% probability of increasing and a 100% 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 at the 1,250 point mark and support is at 1,150 points.

Intraday Stock Support and Resistance (EOD)

Stocks with Surging Trading Volume Today

Watchlist Stocks for Tomorrow

Intraday Chart:

• The war in Ukraine slows global economic growth;
• Stock markets always precede the economy;

US Stock Market: The US stock market is in its worst period in history, with a decline that will likely be the highest after half a year. History shows that developments in the second half of the year are often positive after a bad first half. Some initial signs indicate that inflation is slowing down and energy prices are starting to fall. Easing inflation will help improve investor sentiment at this time.

Investors can download the full report via the following link:

---