MARKET INSIGHTS_02062022

MARKET PULSE

The VN-Index closed trading to form a “Long Black Candle” trading pattern. Trading volume increased and was above the 20-day average. A price decrease with increased volume is not a good technical signal.

Key points to note: (i) The resistance level of 1,304 points has been quite effective in recent sessions. Profit-taking pressure remains consistent due to the good price increase streak of many stocks, and the recurrence of selling after 2:15 PM is not a good sign. (ii) A bright spot in the market is the sector rotation in price increases and the positive demand absorbing low prices whenever there’s a sell-off. As long as the risk rotation continues, opportunities will always remain.

According to the “Price Action” analysis method for VN30, we have 07 codes giving buy signals, 14 codes giving sell signals, and 09 codes giving sideways signals. The banking group has a negative trading pattern, putting pressure on the index’s correction.

According to quantitative statistics, with today’s pattern, in the next trading session, the VN-Index has a 48% probability of increasing and a 37.5% probability of the closing price being higher than the opening price. Statistics show that it will decrease in tomorrow’s trading session. Resistance is at 1,304 points and support is at 1,250 points.

Intraday Stock Support and Resistance (EOD)

Stocks with Significant Surge in Trading Volume Today

Watchlist for Tomorrow

Daily Highlights:

• China is reopening, which will bring additional (unnecessary) bids for oil and energy stocks. The US PCE report has peaked and is declining;
• High-growth economies of 2022;

US Stock Market: US stock indices have corrected for two trading sessions and remain above the dynamic MA(20) support. We observe that semiconductor stocks and AMZN are trading quite well and are likely to support the market’s upward movement in tonight’s trading session.

Investors can download the full report via the following link:

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