Following most Chinese Internet Companies, #Tencent succumbing to the Trump tax-blow. A breakthrough it’s 6-month support line does not paint a pretty picture for the share price going forward.
Next support level could be around the lows of March (350HKD), with a break most probably testing the 200-day moving average at 334HKD. Share price has lost a lot of its strong momentum and would I either wait for a better “tweet” from Trump or for momentum to turn. Although the share price is somewhat oversold according to its 14-day RSI, I would add to wait for it to dip below the 30 mark.
The longer-term outlook for the company is still looking positive with a consensus (according to Thomson Reuters) target price of 425HKD. Be patient…
Next support level could be around the lows of March (350HKD), with a break most probably testing the 200-day moving average at 334HKD. Share price has lost a lot of its strong momentum and would I either wait for a better “tweet” from Trump or for momentum to turn. Although the share price is somewhat oversold according to its 14-day RSI, I would add to wait for it to dip below the 30 mark.
The longer-term outlook for the company is still looking positive with a consensus (according to Thomson Reuters) target price of 425HKD. Be patient…
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.