Tencent Stock Code 0700.HKE
Outlook
We had a buy call on 10th Jan with target at HK345, which was exceeded today when price reached a high of HK349. Price has failed to close the gap and we do not think price will close this gap. If this gap is not close, we are likely to see the start of a new downtrend. MACD is hinting of a reversal with a divergence. The shadow of this candlestick was also very close to the top of the Bollinger Band. We are calling for a short sell with target at HK320 with a possibility to HK312.
Strategy
HK342.00 Short Sell
HK320.00 Price Target
HK355.20 Risk Management Stop
2 weeks Trade Duration
OCBC Bank Stock Code O39
Outlook
We had a buy call on 10th Jan but price have not reached our target as yet. Price only reached a high of $11.86 but had dropped lower to $11.30. MACD has been weak even during the rally. We do not think price will go above 11.86. Bollinger Band has already overtaken price which is a hint of an end of the rally. Instead there is a danger of price moving lower to test the gap at $11.30 to $11.20. We are calling for a closing of our previous long call at cost of $11.60 and go into a short sell at $11.60 for $11.20
Strategy
$11.60 Short Sell
$11.20 Price Target
$11.87 Risk Management Stop
2 weeks Trade Duration
