Stocks on October 21 through technical ‘prism’
admin 20-10-2020, 22:28


Stocks on October 21 through technical ‘prism’
Securities company Positive Neutral Negative BVSC X SHS X VDS X KBSV X VCSC X

Continue to increase points

(Bao Viet Securities Company – BVSC)

VN-Index is still approaching the important resistance zone at 945-950 points, where there is the convergence of the upper BB and the old peak from mid-February 2020. On the contrary, moving averages near SMA10 and SMA20 (930-935 points respectively) are still supporting the index’s recovery.

Regarding technical indicators, MACD and Momentum continued to remain positive and stayed above the signal line, while the trend strength indicator ADX surpassed 25 with + DI above -DI. Besides, the Stochastic Oscillator turned up and crossed above the signal line. These are relatively positive signs for the index’s short-term gaining trend. The index is expected to continue increasing in the next session and towards the resistance zone 977-985 points in the short term.

Continue to vibrate in the range 940-950 points

(Saigon-Hanoi Securities Company – SHS)

The short-term technical signal of the VN-Index is positive with the support at 925 points (MA20). The medium-term technical signal of the index is positive with the support level at 900 points (MA50). Regarding the long-term trend, VN-Index moves in the bull market with the support at 860 points (MA200). It is forecasted that in the next session on October 21, VN-Index might continue to fluctuate in the range of 940-950 points (price range before Covid-19).

The short-term technical signal of the HNX-Index is positive with the support at 136 points (MA20). The index’s medium-term technical signal is positive with the support level at 129 points (MA50). Regarding the long-term trend, the HNX-Index is currently moving in the bull market with the support level at 113.5 points (MA200). It is forecasted that, in the next session on October 21, HNXIndex might continue to fluctuate around the psychological threshold of 140 points.

General developments will continue to be cautious

(Rong Viet Securities Company – VDS)

VN-Index weakened during the session but continued to be supported at the end of the session and formed a Hammer candle. Technical indicators MACD is still recovering, RSI continues to increase slightly. Although there were warning signals correcting in the previous session, the VN-Index was still supported and kept the uptrend. With Hammer support signal, we can expect the index to exit the current disputed zone and extend its uptrend in near future, but general situation will continue to be cautious.

HNX-Index struggled and corrected slightly. Technical indicators MACD hesitated above its signal line, RSI was blocked and stepped back. This shows that HNX-Index is showing the cautiousness. However, the index is still in an uptrend after surpassing its old peak for many years and the current signal cannot conclude that the uptrend has ended. Therefore, it is necessary to wait for more signals to assess the trend status of the HNX-Index.

Recommendation: Although there were warning signals correcting in the previous session, the VN-Index was still supported and kept the uptrend. With late support signals, we can expect the market to exit the current disputed area and extend the uptrend in the near future, but overall movements will continue to be cautious. Therefore, investors can still rely on the uptrend of the market, so they should aim for stocks with positive signals and good supports.

The short-term upside is no longer large

(KB Securities Vietnam – KBSV)

VN-Index continued struggling with bottom-catching demand increasing at the end of the session, helping to lift the index. Intraday movements showed the opportunity to continue tilting towards the uptrend, towards the expected target zone of 960. However, KBSV keeps a cautious point of view when saying that the short-term gaining space is no longer large while the risks The reversal risk still exists as the momentum indicator RSI has moved deeper above the overbought zone. Investors are recommended to avoid chasing buying, waiting for clearer correction before reopening short-term status.

There is increased inertia

(Viet Capital Securities Company – VCSC)

The short-term technical signal of VNMidcap temporarily improves to a positive level to match the signals of the VNI, VN30 and HNX-Index. The VNSmallcap is the remaining index that still has short-term negative signals, but it is showing efforts to improve.

It is expected that tomorrow the market might have a bullish inertia in the morning for the VN30 to test its resistance at 910 and the VNI to test the resistance at 950 points. However, selling pressure at resistance can create a shake after that, possibly even causing the VN30 to correct at the end of the day. In this shaking rhythm, VNMidcap may retest the previous MA10 support at 1012 points while HNX-Index, VNI and VNSmallcap will test the MA5-day support. In a positive scenario the VN30 breaks above 910, the mid-term uptrend of the market will be strengthened and this could have a positive effect on the rest. In this scenario, VCSC expects VN30 to rise to around 945 points, leading to the VNI rising to the peak resistance of 2020 at 990 points.

Investors should only consider comments of securities companies as a source of reference information. Securities companies all recommend disclaimer for the above comments.

Source: ndh.vn – Translated by fintel.vn

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