Will stocks experience the fifth consecutive decline?

April 20, 2022 07:02 GMT+7

The stock market has just experienced 4 consecutive declines, reaching the lowest level in the past 6 months. The positive state of the morning session of April 19 was not maintained and gradually weakened as soon as it touched the resistance area of ​​1,440 points.

In the session of April 19, selling pressure became stronger and stronger, especially after 2pm, causing the market to wobble and lose the important support level of 1,420-1,430 points. At the end, VN-Index dropped 26.15 points (-1.83%) and closed at 1,406.45 points.

Red is the dominant color, covering the VN30-Index with 25 stocks in red and only 3 stocks keeping green including VJC (+3.5%), KDH (+1.6) %), HPG (+1.5%).

Financial sectors, especially securities, real estate and banking continued to be the focus of strong selling throughout the session. The construction & building materials group also had poor performance. The seafood and textile groups are also under relatively strong profit-taking pressure. The oil and gas group, although having a good start, quickly narrowed the gain at the end of the session.

With the market having just gone through 4 consecutive declining sessions, regarding today’s trading session (April 20), securities companies believe that the trading sentiment is still weak, along with the demand to buy prices. high is not drastic.

“Red! red! and it’s red!” is the title of market analysis analysis of BSC Securities Company. According to BSC, with VN-Index touching the support level of 1,400 points again, BSC expects investment cash flow to return. Otherwise, VN-Index may continue to correct to the threshold of 1,380 points.

With VDSC Securities Company, although the move to catch low prices is still happening, the liquidity dropped when VN-Index approached the supply zone of 1,440 points, showing that the cash flow is still not confident in the market’s uptrend. With strong downward pressure at the end of the session yesterday, the bearish inertia is expected to drag the market further to the lower support zone of 1,390 points, but it might recover quickly.

Therefore, investors should suspend selling if the portfolio is not at a high risk level, and wait for the recovery of the market. However, still should be cautious in the group of stocks with speculative nature and high risk.

According to SSI Securities Company, the fact that VN-Index remained above 1,400 points, is a support level that plays an important role in psychological support. If this level is broken, it is likely that the VN-Index will find it difficult to keep the long-term uptrend.

Meanwhile, BVSC Securities Company recommends that investors continue to observe the VN-Index’s reaction at the support level of 1,380-1,400 points. If the index has a positive reaction at this support zone, the market will have a chance to form a technical recovery span in 1-2 weeks. In this scenario, investors who are holding cash and have a low proportion of stocks can consider participating in trading.

From the perspective of technical analysis, according to VCSC Securities Company, the medium-term technical signal of the market is temporarily turning negative. It is forecasted that in the session of April 20, VN-Index will probably maintain its downward inertia at the beginning of the day to test the psychological support level at 1,400 points. If the selling force is not too strong, VN-Inde MA200 at 1,423 points has temporarily lost.

In a positive scenario, if VN-Index closes above 1,423 points thanks to improved buying power, the index will return to the medium-term bull market and prolong the rally to resistance at 1,450 points. On the contrary, if the VN-Index cannot surpass 1,423 points after a few testing sessions, the market is likely to prolong the decline when the “bear market” signal is confirmed.

With the current state of market sentiment, according to statistics of SHS Securities Company, the market is likely to soon form a short-term bottom and recover. Therefore, investors should not continue to sell in the next session 20/4. Investors who bought in the April 19 session within the support zone of 1,400-1,425 points (bottom of December 2021) will continue to hold the portfolio and may increase the proportion if the market continues to return to attractive price ranges. more lead.

Ngan Giang