Technical Pulse: Tencent Holding Ltd June 7, 2019

 

Support 1: 345.73                  Resistance 1: 318.33

Support 2: 400.00                   

We expect a bearish move for Tencent. The stock has completed its 5 wave bullish rally. It is on a minor upward wave right now before entering into a corrective phase. Based on the following technical factors, we believe that the stock will resume its bearish move.

  • Bearish flag formation. The stock may attempt one more short rally to test the top of the flag and then follow by breaking downward.
  • Corrective abc wave is yet to complete.
  • Momentum is slowing down despite oversold is clearly shown in the Stochastic oscillators.

 

CHART LEGENDS

Red line = 200 periods moving average

Blue line = 50 periods moving average

Green line  = 22 periods moving average

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Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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