MARKET INSIGHTS_07052024

SUMMARY OF SOME KEY POINTS IN THE REPORT

Is a follow-through day with low trading volume a failure? In theory, this is entirely possible. For example, a classic case is the US stock market in 2002, which, after bottoming out and having an FTD, still experienced low trading volume for a long period. However, the FTD was indeed the day that confirmed the return of an uptrend. Based on theory, we believe investors do not need to be overly concerned at this time.

In the short term, the dynamic resistance zone of MA(50) at 1,250 will be an obstacle for the index, but we believe the probability of VN-Index successfully breaking through this resistance is high. However, we also note that we are entering a dense resistance area, and this could be a period of significant stock differentiation. Many stocks will not increase in price and will break their lows, but conversely, many stocks will break their highs. From our perspective, stock selection during this period will be more important than predicting the up and down days of the VN-Index (Our implication is that in other periods, the general trend of the VN-Index’s rise and fall has a stronger impact on individual stocks than in this period).

Capital flow tends to favor stocks with strong business fundamentals, supported by expectations of business improvement from macroeconomic factors, world commodity prices, consumption volume, the certainty of improving business profits, etc., rather than choosing purely speculative stocks without underlying business. This is an issue that needs attention when trading stocks.

Investors can download the full report via the following link:

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