Tencent Holdings Ltd (HKG:0700) Uni-Ten Licensing Deal

Tencent Holdings Ltd (HKG:0700) Uni-Ten Licensing Deal

  • Universal Music Group Inks Major Licensing Deal With Tencent
  • Tencent Holdings Ltd. posted a better-than-expected 55 percent surge in quarterly revenue as blockbuster titles including Honour of Kings
  • Tencent is creating an entire town dedicated to esports
  • Universal agrees deal to stream on China’s Tencent’s services

Tencent Holdings Limited is an investment holding company principally involved in the provision of value-added services (VAS) and online advertising services. The Company operates through three main segments. The VAS segment is mainly involved in provision of online/mobile games, community value-added services and applications across various Internet and mobile platforms. The Online Advertising segment is mainly engaged in display based and performance based advertisements. The Others segment is mainly involved in provision of payment related services, cloud services and other services.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 233.21.

The projected upper bound is: 268.94.

The projected lower bound is: 252.78.

The projected closing price is: 260.86.

TENCENT closed up 1.000 at 259.800. Volume was 9% above average (neutral) and Bollinger Bands were 76% wider than normal.

Open             High            Low             Close             Volume
260.800      261.200      258.200       259.800       18,005,770

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period           50-period       200-period
Close:                       252.40               231.00             208.27
Volatility:                21                        22                     25
Volume:                   21,580,886      18,276,136      16,166,639

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary
TENCENT is currently 24.7% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume into 0700.HK (bullish). Our trend forecasting oscillators are currently bullish on 0700.HK and have had this outlook for the last 44 periods. Our momentum oscillator is currently indicating that 0700.HK is currently in an overbought condition.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.3433. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 78.24. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 9 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 113.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 17 period(s) ago.

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John Heffernan

John Heffernan is an Analyst at HEFFX. John is a BSc in Economics with Honors from the University of Buckingham, and is a contributor on equities at Live Trading News.

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