VN-Index could still be on the short-term downtrend

PHS said, investors might consider converting long-term positions into cash to create a safety base when facing the upcoming negative situation on the market.

The market recovered again on Tuesday with bottom-catching cash flow in the afternoon. The liquidity was still low but the indexes gained to close at day highest level, showing that selling pressure has been exhausted after panic selling. Besides, investors also got more confident with information of less positive cases as well as the 5th vaccination plan will soon be operated. Green was in control with most groups gaining. In which, banking, steel, securities, and retail were most remarkable.

In this morning session, VN-Index increased by 6.01 points (0.47%) to 1,279.3 points, HNX-Index increased by 0.62% to 302.98 points, UPCoM-Index increased by 0.91% to 84, 45 points.

The stocks with the most positive impact on VN-Index this morning were VHM, VIC, TCB, VRE and SAB. On the other side, GAS, VCB, VNM, BID and HDB were in red, restraining the index's gain.

Regarding the market's liquidity, the total trading volume this morning reached more than 326.4 million units, equivalent to VND 11,308. In which, order matching transactions on HOSE reached more than VND 7,800 billion, down 16% compared to the previous session. 

PHS said, in technical terms, VN-Index gained again. The volume dropped and stayed below the 10 and 20-session average. However, the index was still on a short-term dropping trend, as it closed below MA5 and 20, and ADX was above 40 with DI being below –DI, supporting the current dropping trend, so this gain might only be technical. Moreover, MACD still dropped to below Signal, maintaining selling sign, therefore, if the index cannot soon surpass close resistant level around 1,277 points (MA5), selling pressure will return and the index might return to the main dropping trend, with strong support level around the sentimental level of 1,200 points. For HNX, HNX-Index saw a similar situation. It gained again but still closed below MA20, and the volume dropped, showing that the cash flow is still cautious, so the index is still on a dropping trend, this gain might only be a technical recovery, with a close resistant level around 310-312 points (MA20 and 50). In general, the market is still on a dropping trend, the gain on July 20th might only be technical. Therefore, investors should limit   chasing purchases to avoid unexpected risks from the market.

While VN-Index is seeing mid-term dropping pressure. Therefore, investors might consider converting long-term positions into cash to create a safety base when facing the upcoming negative situation on the market.