MARKET INSIGHTS_03082023

MARKET PULSE

The VN-Index closed the trading session forming a “Long Black Candle” trading pattern. Trading volume increased and was above the 20-day average. Price increase with decreasing trading volume and price decrease with increasing trading volume are negative technical signals.

Key points to note: (i) RSI(14) is at a high level and starting to slow down for correction. Statistics show that when the daily and weekly RSI are in this state, the market often undergoes a strong correction lasting from 2 to 7 weeks. Therefore, reducing the proportion of stock holdings should still be the priority, even though the market will still have a few “contrarian” stocks. (ii) The breadth of stocks sharply declining towards MA(20) and MA(50) continues to increase, with BMP being the latest stock to hit the floor. This is a market risk warning. (iii) We observe a rotation of selling large-cap stocks. HPG is the first large-cap stock being sold, and if this selling momentum continues to spread to other stocks, the risk will increasingly rise, even though the banking and Vincom groups are still maintaining temporary balance for the index. (iv) We have the second distribution day according to theoretical models. (v) It should be remembered that we have had 3 price gaps since the VN-Index formed its uptrend, and typically the third price gap is called an exhaustion gap.

According to the “Price Action” analysis method for VN30, we have 03 stocks giving buy signals, 13 stocks giving sell signals, and 04 stocks giving neutral signals. SAB, CTG, NVL… show positive signals.

According to quantitative statistics, with today’s pattern, in the next trading session, the VN-Index has a 51% probability of declining and a 63.15% probability of the closing price being higher than the opening price. Based on statistics, the index is expected to decline tomorrow. Resistance is 1,225 points. Support is in the 1,150 points region.

Intraday Stock Support and Resistance (EOD)

Stocks with Surging Intraday Trading Volume

Watchlist for Tomorrow’s Stocks

Intraday Chart:

• Rice export situation;

US Stock Market: Indices are forecast to correct downwards.

Investors can download the full report via the following link:

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