VN-Index may retest 1,680-1,700 points as selling pressure persists
The VN-Index may retest 1,680-1,700 points this week after last week's sharp sell-off, with analysts urging investors to prioritize risk management over bottom-fishing.
Vietnam's VN-Index may test the 1,680-1,700 point range this week as selling pressure continues, with analysts advising investors to prioritize risk management. The index dropped 38.98 points, or 2.2%, to 1,729.08 last week, after two weeks of gains. Analysts attributed the sell-off to shares becoming available for trading around the 1,650-point bottom and a long red candle forming on the weekly chart.
Technical indicators show further downside risks, with the MACD and RSI weakening, and the ADX and -DI staying above 25. The 1,700-point mark is the nearest key support. On the hourly chart, indicators deteriorated further, and although the RSI entered oversold territory, signs of a short-term rebound remained unclear. Investors are advised to focus on risk management, monitor market movements, and review their portfolios, particularly stocks near stop-loss levels.
A potential rebound could occur if market conditions stabilize and large-cap stocks avoid another deep sell-off, with the VN-Index needing to break above 1,800 points to confirm a new uptrend.
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