Tencent Holdings Ltd (HKG:0700) HEFFX Highlights

Tencent Holdings Ltd (HKG:0700) HEFFX Highlights

Tencent Holdings Ltd (HKG:0700) HEFFX Highlights

  • Samsung Electronics Co. and Tencent Holdings Ltd. tumbled as a U.S. technology selloff spread to Asia, sparking the biggest drop of the year for a regional index of stocks in the industry.
  • This past week the hardware giant unveiled two new policies that appear directed largely at WeChat, China’s most popular chat app, where peer-to-peer payments, or “tips,” are transferred every day. The rules suggest that Apple’s relationship with Tencent, WeChat’s owner, could grow more tense. And that could ultimately affect the company’s broader fate in China.
  • Neither Tencent nor Apple responded immediately to Quartz’s requests for comment on this piece.
  • Tencent slumps to lead China tech sell-off as volatility climbs
  • Tencent and AAC Technologies were among the biggest losers on Hong Kong’s benchmark stock index, falling at least 2%

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: 280.91.

The projected lower bound is: 262.11.

The projected closing price is: 271.51.

TENCENT closed down -6.800 at 270.600. Volume was 97% above average (neutral) and Bollinger Bands were 2% narrower than normal.

Open          High           Low             Close           Volume
271.200     274.800     269.400     270.600     38,020,408

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

Moving Averages: 10-period         50-period      200-period
Close:                       272.30              249.96           215.51
Volatility:                26                      24                   25
Volume:                   26,404,728     21,118,454     17,399,012

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 down today (bearish) 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 25.6% 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 61 periods. our momentum oscillator has set a new 14-period low while the security price 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 40.0000. This is not an overbought or oversold reading. The last signal was a sell 12 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 58.36. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 -58. This is not a topping or bottoming area. The last signal was a sell 0 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 8 period(s) ago.v

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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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