MARKET INSIGHTS_10052022

MARKET PULSE
The VN-Index closed the trading session forming a "White Closing Marubozu" candlestick pattern. Trading volume decreased and was below the 20-day average. Price increasing with decreasing volume and price decreasing with increasing volume are not good technical patterns, but the market is currently in a pessimistic state, and there was no major sell-off today, so volume is unlikely to increase with price. Key points to note:
(i) Today we have a double bottom pattern with positive divergence, signaling a potential reversal. This pattern will be complete when the index rises above the neckline with a resistance level of 1,369 points. More time is needed for confirmation, but the market has, to some extent, formed a good technical pattern at this time.
(ii) The ADX(14) "bubble" shows initial signs of bursting, which will bring a less pessimistic psychological effect at this time. The two indicators DI(+) and DI(-) are also gradually forming a divergence pattern.
According to quantitative statistics, with today's pattern, in the next trading session, the VN-Index has a 51% probability of increasing and a 70% probability of the closing price being higher than the opening price. Statistics show that the market will increase tomorrow. Support is at 1,260 points, and the next support is the 1,200-point price zone. We expect a few groups of stocks to continue to rise, leading the market to complete the double bottom pattern. However, it is likely that more than half of the stocks may still correct downwards.
Intraday Stock Support and Resistance (EOD)
Stocks with abnormal trading volume today
Watchlist for tomorrow
Intraday Chart:
* Profits of US-listed companies decelerated in Q1/2022;
* Profits of companies listed on the Vietnamese stock market are still growing positively in Q1/2022;
US Stock Market: Indices broke January 2022 support levels in yesterday's trading session. After a strong selling streak, there is a possibility of short covering at the beginning of today's trading session, and the index may rise, but it could then continue to be sold off and trade in a tug-of-war between gains and losses. If the indices close higher at the end of the day, the market may find its first support level. If it continues to decline, the next support levels for the S&P 500 are 3,941 and 3,800 points (Fibonacci 61.8%). Investors can download the full report via the link below: