Stock Market Daily Forecast: Alternating upward and downward movements may continue

The VN-Index continued its supply-demand test with a sideways movement of /- 10 points around the 1,900 mark in yesterday’s trading session. The main market movement was mixed, with 120 stocks rising and 168 falling. Liquidity remained lower than the 20-day average, indicating continued caution. Bright spots in the session belonged to the Oil & Gas group (GAS, BSR, and PLX), Rubber group (GVR, DPR), and some other blue-chip stocks such as HDB, LPB, and VJC.

In the first hour of trading in the afternoon, Vingroup’s stocks all fell sharply by 5-6%, putting pressure on the index to slide towards the 1,860-point mark. Conversely, positive developments in the oil & gas group and some blue-chip stocks such as HPG, BID, and MSN somewhat mitigated the overall negative sentiment. In the latter half of the session, the VN-Index recovered well, nearing the 1,900 mark, thanks to increased buying pressure and a narrowing of the decline in the Vingroup group. At the close of yesterday’s trading session, the VN-Index closed at 1,898.37 points, down 2.73 points, or 0.14%.

This morning, the VN-Index had risen 3.7 points to 1,902.07 points, while the HNX-Index increased 2.57 points to 257.19, and the UPCoM-Index rose 0.16 points to 126.44. The total market trading value reached nearly VND 2,740 billion.

Green is currently dominating over red. Accordingly, the market recorded 295 gainers (11 of which hit the ceiling price), while the number of losers was 135 (4 of which hit the floor price).

Some market sectors that are performing well right now include banking stocks, notably STB up 1.36%, MSB up 1.1%, VCB up 0.83%, BID up 0.82%...; and oil and gas stocks, with PLX up 1.12%, GAS up 3.55%... In addition, many securities, information technology, food, electricity, and real estate stocks also keep an uptrend...

The VN-Index closed with a Hammer candlestick with a long lower wick, reflecting the efforts of buying pressure in the afternoon. On the daily chart, the CMF indicator is trending upwards, indicating improved active buying pressure. However, the /-DI lines are showing signs of crossing, suggesting that alternating upward and downward movements will continue before the VN-Index stabilizes in the 1,880-1,900 zone.

On the hourly chart, the MACD indicator is moving in the low zone, and the RSI indicator is forming an upward bottom, showing the first signs of a successful test of the 1,860 support level. Nevertheless, attention should still be paid to the sideways movement in the next session, as the DI and ADX lines have not yet reached the 25 mark.

VCBS recommended that investors follow the rotation of cash flows and selectively choose stocks that are responding to the general momentum of the sector while also not having risen much from their base price/strong support zone and disburse funds with the goal of short-term trading (T) during market fluctuations. Some notable sectors include oil & gas, fertilizer, and banking.