Corrective pressure when stocks approach the 1,900 point area

In the last session of the week, VN-Index closed in green, reaching more than 1,880 points, but selling pressure prevailed with the majority of stocks on HoSE. Matching volume increased compared to the previous session and exceeded the 20-session average level by more than 7%. Kien Thiet Securities (CSI) believes that the green color of stocks “lacks breakthrough momentum” and has a potential correction after more than two consecutive weeks of increases.

In February, VN-Index increased by 2.8% and was the fourth consecutive month of increase, but liquidity was quite low.

In the short term, correction signals have begun to appear when VN-Index tested 1,900 points, a psychological mark that could not be conquered in the last session of last week. CSI believes that the general index will still maintain positive signs in the medium term, but there is a possibility of a correction to the support area around the 1,830 point mark, before returning to the uptrend.

From a technical analysis perspective, Vietcombank Securities (VCBS) also believes that on the daily chart, VN-Index struggles in a narrow range to test supply and demand around the 1,875-1,885 point area. The upward momentum of technical indicators shows signs of deceleration in high areas, but has not completely reversed. The immediate resistance area is the old peak around 1,920 points, while the short-term support level is at 1,850-1,860 points.

“The VN-Index ended last week above the 1,880 point mark, showing that the market’s efforts to maintain the index in high areas continue to be strengthened, although the upward momentum has decelerated to a certain extent,” the VCBS analysis team assessed.

Except for a few stocks that slightly adjusted after recording a sudden increase, the majority of the market is still in an upward or sideways trend. VCBS recommends that investors should keep stocks that are in a stable upward trend and do not yet have strong supply. With the goal of short-term surfing, investors can choose codes that have just successfully overcome resistance or have active buying cash flow.

Meanwhile, Saigon – Hanoi Securities (SHS) believes that the corrective pressure over the weekend is normal, mainly in groups that have increased sharply such as industrial parks, fertilizers, chemicals, telecommunications… On the contrary, the prominent increase belongs to Vingroup, Gelex and the retail industry. The high differentiation shows that the market still has many opportunities when the cash flow continuously circulates.

The market is returning to the highest historical price level set at the beginning of the year. On the January 13 session, stocks set a record with a closing price close to 1,903 points. In the next session, the general index sometimes reached 1,910 points. However, at that time, VN-Index quickly came under strong correction pressure to around 1,740 points, and only recently began to recover.

SHS believes that current market movements are still inclined to rotate and look for short-term opportunities, but are still under pressure to sell at high prices at the old peak area. According to them, this is not an attractive valuation area of ​​the market. Investors should consider selling positions at high prices, structuring short-term portfolios with codes that have met expectations and maintaining a reasonable portfolio proportion.