Tencent Technical Analysis
For the record my very long term outlook for Tencent is very bullish. As you can see above the long term trend is very bullish. But stock cant go straight up all of the time. And with a strong long term trend like this you can expect those long term holders to have a strong profit take. But how long will this strong profit take last? For now nobody knows. So The short term outlook is bearish until Tencent can break above this weekly bearish channel you can see below highlighted be the light blue lines. I have also highlighted some strong supports and resistance levels in yellow and puprple. Watch these areas for some volatility in price action. also watch for potential reversals or breakouts and breakdowns at these levels. For short term traders these levels are as good as gold.
As you can see below the very short term chart is showing a possible wedge forming. Sometimes you can get solid momentum in price action when the price breaks to the upside or downside of this wedge. If the short term trend continues then we should see a break to the downside. But if the long term trend will continue and the long term profit take is over then we should break out to the upside. But with everything going on in the world right now I am short term bearish on this one. Although Chinese stocks have outperformed most of the worlds markets recently with the reopening of lockdown cities and the Chinese stimulus releasing. Also Chinese currencies have been devaluing lately compared to the US dollar. These are the only factors helping chinese equities that I know about at the moment.
Things will look much more bullish if we can break out of the bearish price channel seen above.
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SpyderCallOP : @102640653check it out. i was meaning to send this to you yesterday. sorry i forgot
102640653 : Good is it worth to buy it for contra purposes at around this level. Looks strong. After downward retracement . It moves up fast .
102640653 : Same goes for hang Seng index. Opened with a big gap up yesterday , came down back n close negative n today u see it returning back to upward momentum
102640653 : Have a feeling they would push up us stocks n bitcoin tonight. They r both heavily oversold region, bounce will be strong enough . Might last for 2 -3 days
SpyderCallOP 102640653: I wouldn't buy yet until we get above this bearish price channel. but you are right about price moving up fast after such a strong retracement like this. But I must wait for the downtrend to break then I will react.
102640653 : Investors mentality is that today is Friday n most would not want commit to any position on fear. But my sis th sense is that us markets down for far two many days n how much further can it go down. It’s going be bumpy ride but we can profit from bounces in between. Risk currently is Low if I see how far the index has gone.
102640653 : Hope we get a strong follow -through bounce . Good luck. Thanks
SpyderCallOP 102640653: Bit coin is very oversold right now but on the long term charts it broke down below a very long term price channel. It is a wide price channel so this could be nothing but it is worrisome. I will tag you in my post about bitcoin. Give me some time to put the chart together and I will tag you as soon as I am done
SpyderCallOP 102640653: yes you are right. But be careful before you load up before US markets open because it is a quadruple witching day tomorrow in the US. You can look up info on it but basically A lot of Quarterly, Monthly, Weekly, and Daily options expire tomorrow. This will cause huge moves just off of the options expiring. Then there are major institutions rolling over or repositioning their contracts and positions at the same time. Big moves happen usually on witching days.