Tencent Holdings Ltd (HKG:0700) HEFFX Highlights

Tencent Holdings Ltd (HKG:0700) HEFFX Highlights

Tencent Holdings Ltd (HKG:0700) HEFFX Highlights

  • Spotify has long been linked with going public in the U.S. — it is speculated to be preparing for an IPO-less listing next year — but it has emerged that the company rebuffed the opportunity to sell to a major tech name earlier this year: Tencent, the Chinese internet giant valued at $380 billion.
  • Tencent is said to have approached Spotify with a view to acquiring the company to extend its burgeoning music business outside of China and Asia, a source with knowledge of discussions told TechCrunch.
  • Spotify and Tencent both declined to comment when TechCrunch got in touch.
  • It isn’t clear whether talks got to the point that a price was discussed between the two — Spotify’s intent on going public is clear so it may not have advanced to that stage — but it’s an interesting thread to pull.
  • Chinese internet giant Tencent aims to increase advertising income by using artificial intelligence and branded virtual costumes in video games, but is reluctant to put more advertising on its flagship WeChat social network, according to the group’s executive in charge of digital advertising.
  • Ad revenues drive earnings for most of the tech world, but not in China. Tencent’s WeChat network is approaching half Facebook’s 2bn users, but digital ad revenues this year are forecast at under $7bn, compared with the US social media group’s $36bn-plus, according to eMarketer.

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: 355.24.

The projected lower bound is: 325.04.

The projected closing price is: 340.14.

TENCENT closed up 1.800 at 338.800. Volume was 12% above average (neutral) and Bollinger Bands were 33% narrower than normal.

Open            High             Low            Close            Volume
337.000      340.600      334.200      338.800      24,571,496

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

Moving Averages: 10-period         50-period        200-period
Close:                       328.40             313.28              248.38
Volatility:                20                     31                       25
Volume:                   17,122,322      20,364,496      18,873,718

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 36.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 0 periods.

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 89.4531. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 66.26. 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 24 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 146.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 12 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 1 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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