Tencent Holdings Ltd (HKG:0700) HEFFX Highlights

Tencent Holdings Ltd (HKG:0700) HEFFX Highlights

Tencent Holdings Ltd (HKG:0700) HEFFX Highlights

Tencent Holdings Ltd announced plans on Monday to pour money and resources worth two billion yuan ($294 million) into promoting original content for its live streaming platform, as the internet conglomerate steps up its efforts to connect social networking with live streaming to attract users.

Now Live, the live streaming app operated by Tencent, said it will invest one billion yuan in cash and one billion yuan worth of resources to encourage people and companies to produce more original content.

“After red-hot competition last year, the burgeoning live streaming sector is becoming more rational,” said Yin Yu, vice-president of Tencent.

Chinese internet giant Tencent has unveiled a five year plan to accelerate its esports expansion and create a 100-billion-yuan ($14.6 billion) esports market in China. The plan involves setting up leagues, tournaments, and associations, but also nurturing talent and constructing esports-themed parks in China, the company announced Friday at a press conference, according to a report from Chinese media group Caixin.

China’s Dalian Wanda group Monday unveiled a strategic cooperation pact with Internet giant Tencent, an agreement stretching from cooperation in film to VR and games.

The property and entertainment conglomerate also revealed a massive 27-film production and investment slate and a slew of first-look deals with local producers.

Indian messaging unicorn Hike moves into payments, taking notes from Tencent’s WeChat

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.

The projected upper bound is: 290.91.

The projected lower bound is: 271.29.

The projected closing price is: 281.10.

 

TENCENT closed up 1.200 at 280.000. Volume was 18% below average (neutral) and Bollinger Bands were 47% narrower than normal.

Open           High            Low            Close            Volume
282.800     283.800     279.200     280.000     16,108,404

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

Moving Averages: 10-period        50-period      200-period
Close:                       274.84             256.00           217.75
Volatility:                27                     24                    25
Volume:                   25,311,650     21,521,240     17,456,450

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TENCENT is currently 28.6% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of 0700.HK at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on 0700.HK and have had this outlook for the last 67 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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 67.6471. This is not an overbought or oversold reading. The last signal was a sell 18 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 64.93. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 6 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 187.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 sell 14 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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