Tencent major 4.5% drop sending a break in structure Tencent break in uptrend structure - Bearish
Tencent has eventually broken below the Uptrend structure after fantastic upside.
This means, the price is now in free fall and is more likely to touch the previous support (brim level of the last Cup and Handle ).
21<7 price>200 - Reversal
RSI <50 - Bearish
Target 312
I just did an analysis on Naspers which we spoke about how Tencent has the correlation.
As Naspers correlates with Tencent and Prosus... We saw a sluggish market in Asia session with the banking holiday effect in America.
Hong Kong stocks slump as Chinese tech giants step up rivalries, HSBC in focus as market await corporate earnings boost. The Hang Seng Index declined 1.7 per cent to 20,529.49 at the close of Tuesday trading, the biggest drop in over a week. The Tech Index tumbled 3.6 per cent while the Shanghai Composite Index added 0.5 per cent. The benchmark index has lost nearly 5 per cent in the past two weeks as hedge funds withdrew from the market. With Tencent dropping 4.5% this is why we saw a large breakaway gap with Naspers.
Caution is needed with such volatility .
Tencentshort
TCEHY Price Target Price target for TCEHY Tencent is $56.
All the Chinese stocks are primed for a strong recovery after China`s top administrative authority said it would work to stabilize the stock market and boost economic growth!
Traders are expecting the Chinese government would support the stock market like the FED did in the US.
My 2 Cents on TencentTencent Holding - Short Term - We look to Sell at 65.50 (stop at 69.00)
Preferred trade is to sell into rallies. Trading within a Bearish Channel formation. 65.00 continues to hold back the bulls. The 200 day moving average should provide resistance at 67.00. Previous resistance located at 65.00. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 65.00, resulting in improved risk/reward.
Our profit targets will be 55.00 and 52.50
Resistance: 65.00 / 68.00 / 70.00
Support: 55.00 / 50.00 / 45.00
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Hong Kong Tech Giant Tencent, is it time to buy? After a crash of 40%+ from the recent high in Feb, is it time to buy Tencent again?
Tencent has not closed below the 40 MA on the monthly chart yet.
The last few times it has fallen close to this moving average, it has provided a great buy opportunity for the short, mid, and long term.
Currently, the MA level to watch is 431.
If we close below this moving average, it could be a strong sign that downside risk has increased again...
Tencent might see further downside given more stricter scrutiny!China’s antitrust watchdog fined Alibaba Group Holding Ltd. and a Tencent Holdings Ltd. unit over a pair of years-old acquisitions and said it’s reviewing an impending Tencent-led merger, signaling Beijing’s
intention to tighten oversight of internet sector deals.
The penalties come after regulators last month declared their intention to increase scrutiny of China’s largest tech
corporations with new anti-monopoly rules. Beijing in November unveiled draft regulations that establish a
framework for curbing anti-competitive behavior such as colluding on sharing sensitive consumer data, alliances
that squeeze out smaller rivals and subsidizing services at below cost to eliminate competitors. Shares in Alibaba
and Tencent extended losses and closed down more than 2.5%.