Tencent Holdings Ltd (HKG:0700) HEFFX Trading Outlook

Tencent Holdings Ltd (HKG:0700) HEFFX Trading Outlook

Tencent Holdings Ltd (HKG:0700) HEFFX Trading Outlook

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

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 173.06.

The projected upper bound is: 193.11.

The projected lower bound is: 178.22.

The projected closing price is: 185.67.


HEFFX Candlestick warn of a top

During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 31 white candles and 18 black candles for a net of 13 white candles.

A gravestone doji occurred. This often signifies a top (the longer the upper shadow, the more bearish the signal).


Beta: 1.08
Market Cap(Mil.): HK$1,746,535.00
Shares Outstanding(Mil.): 9,466.32
Dividend: 0.47
Yield (%): 0.25


0700.HK Industry Sector
P/E (TTM): 48.01 36.21 17.34
EPS (TTM): 3.84
ROI: 18.91 17.07 9.90
ROE: 28.92 20.34 7.51

TENCENT closed up 0.633 at 185.133. Volume was 98% below average (consolidating) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
185.133 185.133 185.133 185.133 318,150

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

Moving Averages: 10-period 50-period 200-period
Close: 186.38 176.19 156.78
Volatility: 19 27 29
Volume: 11,655,090 16,404,713 17,102,868

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.

TENCENT is currently 18.1% 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 moderate flows of volume into 0700.HK (mildly bullish). Our trend forecasting oscillators are currently bullish on 0700.HK and have had this outlook for the last 47 periods.


HEFFX Momentum

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 16.0317.  This is an oversold reading.  However, a signal is not generated until the Oscillator crosses above 20  The last signal was a sell  10 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 57.69.  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 37 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 -27.  This is not a topping or bottoming area.  The last signal was a sell 2 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line.  The last signal was a sell 2 period(s) ago.


Tencent Holdings Limited is an investment holding company. The Company and its subsidiaries are principally engaged in the provision of Internet and mobile value-added services (VAS), online advertising services and eCommerce transactions services to users in the People’s Republic of China. The Company operates in four segments: VAS, Online advertising, eCommerce transactions, and Others. It also engages in the provision of trademark licensing, software development services and sales of software. Its subsidiaries includes Tencent Computer, Tencent Technology, Shiji Kaixuan, Tencent Cyber (Tianjin) Company Limited (Cyber Tianjin), Tencent Asset Management Limited, among others.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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