MARKET INSIGHTS_09052022

MARKET PULSE

The VN-Index closed the trading session forming a “Long Black Candle” pattern. Trading volume increased and was above the 20-day average. A price decrease with increased volume is not a positive sign, as demand today could not absorb the selling supply.

Key points to note: (i) Technical indicators have returned to the oversold region and are forming a double-bottom pattern with positive divergence, signaling a potential reversal (Requires a session with a price drop below the 1,260 point region). (ii) The VINCOM group remains the strongest support, preventing the index from falling further. Additionally, as usual, VCB often goes against other banking stocks with efforts to turn green during the day. (iii) Market breadth is heavily skewed towards selling, and we are in a state of extreme pessimism. (iv) The ADX(14) bubble is in a region signaling a trend reversal. Investors need to observe the divergence of the two indicators DI(+) and DI(-) at this time.

According to quantitative statistics, with today’s pattern, in the next trading session, the VN-Index has a 48% probability of increasing and a 54.54% probability of the closing price being higher than the opening price. Statistics suggest the market will decline in tomorrow’s session. Support is at 1,260 points, and the next support is the 1,200 point price region. We expect bottom-fishing demand to increase in tomorrow’s trading session as the market has fallen sharply with many stocks entering strong support areas.

Intraday Stock Support and Resistance (EOD)

Stocks with a Spike in Trading Volume Today

Watchlist of Stocks for Tomorrow

Intraday Chart:

• Has US CPI peaked as predicted by Prof. ?;
• Taylor Rule with the US economy;

US Stock Market: The indices are still in a strong support area, and despite quite negative trading, both the S&P 500 and Dow Jones have not yet broken their nearest support lows. Fundamentally, support remains support until it is broken. We will observe for two more trading sessions to clarify the market trend.

Investors can download the full report via the following link:

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