MARKET INSIGHTS_12052022

MARKET PULSE

The VN-Index closed trading to form a “Bearish Evening Doji Star” trading pattern. Trading volume increased and remained below the 20-day average. A price decrease with increased volume is a negative pattern because sellers are still dominating the market and buyers are only buying at low prices.

Key points to note: (i) Today we have a double bottom pattern with positive divergence signaling a reversal. Today’s session is also forming a Failure Swing pattern, signaling another reversal. Therefore, fundamentally, we still see this as a common market pattern. (ii) RSI(14) has fallen back into the oversold region. (iii) Actual selling pressure is not too strong, as excess sell orders are mostly only a few hundred thousand shares. This is also a positive point because the demand to sell at any price has decreased compared to previous declining sessions. (iv) After today’s decline, the number of codes showing positive divergence has become the majority on the exchange (more than the previous trading session). We observe that for codes with this pattern, the price decline in today’s session was much less than for codes that have not yet formed this pattern.

According to quantitative statistics, with today’s pattern, in the next trading session, the VN-Index has an 85% probability of increasing and a 33.33% probability of the closing price being higher than the opening price. Statistics show that the market will increase tomorrow. Support is the 1,180-point region.

Intraday Stock Support and Resistance (EOD)

Stocks with Unusual Trading Volume Today

Watchlist of Stocks for Tomorrow

Intraday Chart:

• Will the FED soon return to QE?;
• Volume of goods cleared through seaports and Vietnam’s Q1/2022 import-export turnover;

US Stock Market: Many signs indicate that inflation has peaked and the FED will only consider further interest rate hikes in the next 2 months (in July). The FED also committed not to repeat the lessons of the 70s, although it cannot yet be certain about the possibility of success. We observe that commodities are showing signs of decline, and as inflation stabilizes, investors will see better growth prospects for the market. Of course, in the short term, there is still a gap from the current price to the stronger support zone, and therefore, the intensity of volatility will depend on the speed of the fall to the strong support point.

Investors can download the full report via the following link:

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