Alibaba, Tencent and more — 5 stocks to watch this week

US Markets closed last week higher for the 3rd consecutive week thanks to the current relief rally. The S&P500 index is just shy of 1.5% away from the previous high set at the end of March 2024. While the NASDAQ index is about 2.5% away from all time highs. Last week was a pretty quiet week due to the lack of any key economic news or unexpected market events. US 10-year Note auction saw an increase in demand, leading to a drop in yields, from 4.56% to 4.48%. The labour market also saw further weakness with unemployment claims coming in much higher than the market's consensus.

Asian majors were mixed last week. Chinese markets (HSI and A50 Index) continued its bullish rally following announcements that the Chinese government would be restricting foreign market flow for the stock markets. This move prevents any local investors from being misled by foreign market sentiment and looks to build confidence in the local markets. Japan's NIKKEI225 closed marginally lower last week due to an increase in market volatility and further weakening of the JPY. At the same time, last Friday's data on household spending showed that consumption has also weakened. Lastly, Singapore's STI dipped lower last week as well, but still within a consolidation. The REITs sector held strongly showing broad gains. However, the banking and industrial sectors slowed down, adding to the sluggishness of the STI.

Daily Chart - [BULLISH ↗️ **] Alibaba shaped a bullish breakout above descending trendline. As long as price is holding above 75.20 support, a further push up towards 86.00 resistance is expected. Technical indicators are advocating for a bullish scenario as well.

Daily Chart - [BULLISH ↗️ **] Tencent showing a very strong bullish push. With the price holding above 360.00 support, a further push up towards 413.00 resistance is expected. Technical indicators are also advocating for further bullish upside.

Daily Chart - [BULLISH ↗️ *] NetEase forming a possible inverse head and shoulders reversal pattern. As long as the price is holding above 149.50 support, a further push up towards 170.00 resistance is expected. Price is holding above 21 period EMA while MACD is showing a build up in bullish momentum but yet to cross above 0.

Daily Chart - [BULLISH ↗️ *] Comcast is holding above strong support at 37.40, level above which we expect price to bounce and push through intermediate resistance at 41.00 towards next resistance at 43.30. Price is crossing above 21 period EMA with bullish divergence noted on MACD.

Weekly Chart - [BULLISH ↗️ *] Shimano price shaped a bullish exit of a long term descending wedge pattern. As long as price continues to hold above 23910 support, a further push up towards 28700 resistance is expected. Technical indicators are advocating for a bullish scenario as well.