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Monthly Journal: Traders' Insights Wanted!
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Technical Outlook for Tencent

The outlook for $TENCENT(00700.HK)$ is very similar to $BABA-SW(09988.HK)$ . Their price action looks very similar in the near-term. Their business models are very similar as well. The only difference between the two tickers is the price points of the technical support and resistance levels on the charts of each company. So if you want a more detailed thesis for Tencent's technical outlook then check out this previous post about the technical picture for $Alibaba(BABA.US)$.
As illustrated in the picture below, Tencent's share price has climbed above bear market resistance and is no longer in bear market territory. This is a bullish development for the technical picture. Remember that after a strong rally the initial correction can be strong as well. So the first profit-take might look pretty ugly but it should present a great buying opportunity since the Chinese economy is officially reopening and covid related travel restrictions have eased in a big way.
Technical Outlook for Tencent
I believe in the China reopening trade and I think there is more upside. I don't believe Tencent's price action will go straight up though. So here are the technical support and resistance levels that I am watching for potential reversals and dip buy opportunities. If there is a major correction to follow this 75% rally then I will be watching these levels for a dip buy opp.
Technical Outlook for Tencent
Remember that the outlook for $Tencent(TCEHY.US)$ is very similar to Alibaba's outlook. So check out that previous post for greater detail into the technical picture of both tickers.
As always, good luck trading. Be careful and be patient. Give your investments time. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. And just follow the trends. A trend is your friend.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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