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Stock comments for October 7-11:  Adjustment pressure in the first sessions of the week

Stock comments for October 7-11: "Adjustment pressure in the first sessions of the week"

Friday 17, 01 2020
The comments and investment recommendations of a number of securities companies on the weekly market movements for the 7th-11th October session.

Ending the session on 4/10, VN-Index closed down 4.86 points (0.49%) to 987.59 points; HNX-Index decreased by 0.05 points (0.05%) to 105.16 points.

Stock comments for October 7-11

Continue exploring in the area of 983-987 points

(According to Rong Viet Securities Joint Stock Company - VDSC)

"At the end of the session, the index closed at the lowest level and at the EMA line (26). MACD continued to weaken to below the signal line, RSI weakened to 50.
This shows that the VN-Index is temporarily in the process of hesitating around the EMA (26) after the failed attempt to conquer the 1,000 points and there is a potential risk of a decline to 975-980 points in the short term. It is expected that the index will continue exploring in the area of 983-987 points in the next session."

Cautious trading and fluctuation in a narrow band

(According to VNDirect Securities Joint Stock Company - VND)

Foreigners' net-selling chain occurred at the same time that global capital inflows ran into sheltered assets such as US government bonds and precious metals and sold risky assets such as stocks.

Next week, international investors will pay attention to employment data and consumer price index of the US economy. The process of trade negotiations between the US and China will also continue. The domestic market will enter the third quarter business report period with a deadline of October 20.
After three weeks of optimistic trading, in the next trading week, the market is expected to be cautious in trading and fluctuate in a narrow band.

The risk of deep decline is not too worrying

(According to Tan Viet Securities Joint Stock Company - TVSI)

"The index fluctuated before dropping at the end of October 4, reflecting the cautious psychology of cash flow at the moment.
The support zone of 988 - 992 points is broken, increasing the possibility of correcting in the next few sessions. However, the risk of deep decline is not too worrying. Price fluctuations will generally remain in a state of tension. Meanwhile, the motivation for the market to surpass 1,000 points at the end of the year still remains. Therefore, we think that investors should maintain their holding position.
Support zone will be at 960 - 970 points, resistance zone will be at 990 - 1,000 points, the next resistance area will be at 1,015 - 1,030 points."

Under adjustment pressure in the early sessions of the week

(According to Bao Viet Securities Joint Stock Company - BVSC)

"Next week, the market is forecasted to be under correcting pressure in the first few sessions of the week before it is expected to recover and rally again at the end of the week. Vn-Index will retest the support area of 980-983 points. Here, the index is likely to return to a rising reaction.
At present, we observe that the market tends to form a fluctuating channel with the upper bound of 995-1000 points and the lower bound of 980-983 points. This movement is expected to continue in the short term to give the market time to create a cumulative price base before sending clearer signals on the next trend.

The current negative point is that foreign investors' net selling has shown no sign of stopping. If this activity continues with a strong level, together with the impact from negative fluctuations of the world market, it will create significant pressure for the market's recovering trend in the short term.
For investors who still hold a high proportion of stocks, they will continue to sell stocks to reduce the proportion to the balance in the strong rally of the market, especially at the resistance area of 995-1000 points. It is possible to buy short trading or cover part of the short positions sold at the support area we mentioned above."

These market comments of securities companies are only valid as references. Securities companies may have conflicts of interest with investors when making their comments.

Money begins to return to stock, a series of stocks rebound

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