[We called it!] Tencent soars, but still more upside remains

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.

The tech giant closed 4% higher in Wednesday trading, suggesting that our thesis earlier this week is heading in a favourable direction.

Daily Chart - [BULLISH ↗ **] Tencent showing a very strong bullish push. We maintain our bullish bias, expecting a further push up towards 413.00 resistance. Technical indicators are still advocating for further bullish upside.

Tencent released its Q1 2024 earnings yesterday. The announcements came out better than expected after reporting that its WeChat video advertisement income rose by more than 60%. The firm also pointed out that there were still two structural pillars for further growth potential. Firstly, it sees a faster increase in high-margin revenue sources and secondly, the current underutilisation of its ecosystem. Should the firm be able to maximise and successfully build on these two pillars, Tencent would be well positioned for further growth.