TENCENT Technical Analysis

Support:  HKD364.800

Resistance:  HKD412.800

The RSI indicator stands at 91.456, and the CCI indicator is at 213.897. Judging from indicators such as RSI and CCI, the stock is considered to be in a severely overbought condition. The average cost of holding the stock is around HKD 365.200, while the current stock price is at HKD 411.400, indicating that the majority of shareholders are currently in a profitable state and may consider taking profits, especially when technical indicators suggest an overbought situation. Investors may choose to sell the stock to lock in profits, and this collective action could exert downward pressure on the stock price.

Overall, the current stock price of HKD 411.400 is higher than the support level of HKD 364.800, and it is not expected to drop sharply in the short term; it is about to break through the resistance level of HKD 412.800, and may continue to rise. However, investors should also be cautious of the risk of pullback after being overbought.

On the evening of August 11th, Tencent Holdings released its latest performance report. The report shows that the company's revenue in the second quarter was RMB 161.12 billion, a year-on-year increase of 8%; the adjusted net profit for the second quarter was RMB 57.31 billion, a year-on-year increase of 53%. The main growth was contributed by advertising and gaming businesses, while the financial technology business was relatively weak due to macroeconomic influences.

On September 24th, Tencent Holdings repurchased 2.53 million shares at a price of HKD 389.600 to 402.200 per share, with a total repurchase amount of HKD 1.002 billion. Since August 16th, the company has been repurchasing shares for 26 consecutive days, with a total of 69.10 million shares repurchased, and a cumulative repurchase amount of HKD 26.047 billion. During this period, the stock has accumulated a rise of 9.17%.

Tencent's customer service stated that the adaptation of WeChat for the HarmonyOS NEXT edition is progressing smoothly and is currently in the development process. Huawei's HarmonyOS NEXT system began public testing on October 8th, with the first batch of supported devices including Mate 60/X5 series smartphones and MatePad Pro 13.2-inch series tablets.

Tencent Financial Cloud announced that it has recently signed a strategic cooperation agreement with the China Financial Certification Authority (CFCA). The two parties will further strengthen their cooperation in fields such as digital identity authentication, electronic signature, business security, judicial service business, and mobile terminal testing, based on a solid foundation of previous cooperation.

On September 11th, WeChat Pay, a subsidiary of Tencent, announced a partnership with ICBC Macau and Galaxy Macau Integrated Resort. Over 60 shops and service points within Galaxy Macau will be the first to access palm vein verification and payment functions, marking the first application of WeChat's "Palm Payment" outside of China.

The current stock price is above the support level of HKD 364.800, indicating a strong market bottom support. Although indicators such as RSI and CCI show that the stock is overbought, suggesting some selling pressure, the stock price is about to reach the resistance level of HKD 412.800, which may indicate the potential for further price increases. However, considering the overbought situation, investors should be cautious of possible price pullbacks.

Tencent Holdings has demonstrated its confidence in its own value through continuous share repurchases. As of now, this year, Tencent Holdings has conducted a total of 91 repurchases, accumulating to 248 million shares, with a total repurchase amount of HKD 87.411 billion. In terms of business development, Tencent Holdings has made significant progress recently, including the smooth adaptation of WeChat for Huawei's HarmonyOS NEXT, a strategic cooperation on digital services between Tencent Financial Cloud and the China Financial Certification Authority, and the expansion of WeChat Pay's "palm payment" feature overseas.

In summary, Tencent Holdings' stock price is sending positive signals from both technical analysis and the company's fundamentals. Although it may face challenges from market volatility in the short term, the company's in-depth layout in different business areas and continuous share repurchases suggest that it offers an attractive investment opportunity for investors in the long run.