Stock Market Weekly Forecast: Gradually disbursing funds during corrections

During the trading week of April 13-17, the VN-Index recorded a strong increase from the beginning of the week. Throughout the trading week, buying pressure was consistently strong in large-cap stocks, notably VIC, HPG, VHM, and MWG, helping the VN-Index continuously break through and surpass major resistance levels. Liquidity also saw positive growth this week, with total trading volume consistently remaining around 10,000 billion VND. However, foreign investors continued to be a negative factor, with net selling reaching nearly VND 4,000 billion.

The VN-Index opened the morning session on April 17th with a gap increase of over 10 points. Led by strong proactive buying pressure, the VN-Index quickly broke through and reached 1,846 points shortly after. However, upon reaching high points, short-term profit-taking pressure quickly emerged, causing the momentum to falter, forcing the index to significantly narrow its gains and gradually retreat towards the reference level.

In the afternoon session, the VN-Index rebounded from the start, still driven by demand from the consumer and banking sectors (VPB, TCB). However, profit-taking pressure continued in many other large-cap stocks, causing the VN-Index to lose momentum and reverse slightly, closing below the reference level.

At the close of the session, the VN-Index closed at 1,817.17 points, down 2.66 points, or 0.15%. For the week, the VN-Index increased by 67.17 points (3.84%) compared to the previous week.

This morning, the VN-Index fell by 0.19% to 1,813 points with many stocks in downtrend, such as DGC, ABS, ADG, APH, BAF, BSI…

The VN-Index closed the week with a gravestone doji candle after several strong breakout sessions. On the daily chart, momentum indicators maintain a positive trend, with the RSI continuing to move upwards towards the overbought zone. Simultaneously, the MACD indicator also continues to widen the gap between the two signal lines, indicating that buyers still dominate the market.

On the hourly chart, short-term profit-taking pressure is gradually increasing. Specifically, the RSI shows signs of cooling down after reaching the overbought level, combined with the MACD giving a downward crossover signal. These developments predict that the market is likely to continue facing fluctuations and tug-of-war in the early sessions of next week to retest demand, with the nearest support zone to pay special attention at 1,801 points (equivalent to the MA20 moving average).

Based on current developments, VCBS recommends that investors continue to maintain a safe portfolio. Given the existing selling pressure and the potential for market fluctuations, investors should remain cautious and avoid chasing rallies in stocks that have experienced rapid breakouts or are approaching strong resistance levels. Investors should be patient and gradually disburse funds during corrections in stocks with strong fundamentals and belonging to sectors that attract capital flows, such as banking and consumer goods.