Tencent is cheap?
Tencent's price is resting on top of the 100 month moving average. Many investors use this moving averages a strong support level. But the trend on the monthly candles is clearly down. And the price channel has clear and parallel support and resistance trend lines that are highlighted by the blue lines. if the price does go below the 100 month moving average then I would expect it to follow this price channel downward. Also below this price channel there is one major support level. I have highlighted it by the yellow line. If the price does go below the 100-month moving average than this yellow support line is the next major area I will be watching for a bounce.
In the chart directly below you can see the weekly candles. You can also see a downward trending resistance highlighted by the blue line. It is possible that we might see some buyers stepping in if the price can move above this resistance. Take note that the price action on the weekly candles is range bound. So it's possible that the price will stay within the range even if we do break above the resistance level.
With the daily candles in the chart below you can see more clearly the range bound price action that was mentioned above. With a range like this you can go long if we bounce off support or you can go long if we break out above resistance. If you want to go short then you can go short at resistance or you can go shorts when the price breaks below support.
If you are looking for confirmation of a move to the upside on a short-term time frame then you could possibly use this four hour price channel and the chart below.
Basically Tencent's trend has been down for about 2 years. We must not fight the trend. Technically speaking we should be looking for short opportunities. if you were thinking about taking a long position then you must at least wait for a support level to be reached. If you are thinking with a very long-term investment mind frame you would think Tencent is very cheap because it has fallen very far from its all-time highs. But even with a long-term investment strategy I would wait for an uptrend to officially start. For a long-term investor the uptrend will not officially start until we can break above the downward trending resistance I mentioned in the very first chart.
$SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$ $SPDR Dow Jones Industrial Average Trust (DIA.US)$ $SPDR Gold ETF (GLD.US)$ $VIX Index Futures(NOV4) (VXmain.US)$ $Crude Oil Futures(DEC4) (CLmain.US)$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf (UUP.US)$ $iShares 20+ Year Treasury Bond ETF (TLT.US)$ $SSE Composite Index (000001.SH)$ $Hang Seng Index (800000.HK)$ $CSI 300 Index (000300.SH)$ $S&P/ASX 200 (.XJO.AU)$ $FTSE Singapore Straits Time Index (.STI.SG)$
$SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$ $SPDR Dow Jones Industrial Average Trust (DIA.US)$ $SPDR Gold ETF (GLD.US)$ $VIX Index Futures(NOV4) (VXmain.US)$ $Crude Oil Futures(DEC4) (CLmain.US)$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf (UUP.US)$ $iShares 20+ Year Treasury Bond ETF (TLT.US)$ $SSE Composite Index (000001.SH)$ $Hang Seng Index (800000.HK)$ $CSI 300 Index (000300.SH)$ $S&P/ASX 200 (.XJO.AU)$ $FTSE Singapore Straits Time Index (.STI.SG)$
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SpyderCall OP : @102640653I'm looking at Alibaba in the Hang Seng Index right now. but I should mention that there are a lot of news headlines in China recently about these gaming and media companies. it could possibly be affecting the price action of a lot of these companies like Tencent.
102640653 : Thanks
SpyderCall OP 102640653 : it looks like a very rough start to the week for the Hang sang index. literally nothing is green except for smic a semiconductor company. and Lenovo is green because of some news headline. so those are both a fluke I think. the Hang sang really needs to turn green today. if we break below this this tiny range we have been in for several days than I think Hang Seng will be headed down to a lower support level. we really need to bounce today
102640653 SpyderCall OP : I doubt it bounces offf . Us futures not good as well as China a50 is not good
102640653 SpyderCall OP : Maybe heading towards 19800 level on hang Seng index
SpyderCall OP 102640653 : very true I see that now nothing is doing very good. sometimes Mondays can start off very red. the beginning of the week and the end of the week is where many long-term investors enter our exit positions. so that could possibly be the reason why Monday looks so bad right now. I'm not exactly sure. even all the cryptocurrencies are not looking good right now
SpyderCall OP 102640653 : that is definitely the next support level. around that 19,800 area. if we do continue to drop I will be watching that zone like a hawk watches his prey