Tag: Tencent

Tencent Stock Code 0700.HKE

Outlook

We had a buy call on 10^th 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 10^th 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

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OCBC Bank Stock Code O39

Outlook

Price has moved above the Bollinger Band. However there was no Bollinger Band squeeze before the breakout, reducing the reliability of the breakout. That does not mean the breakout is invalid. Price is trying to break above its recent high at $11.60. MACD has turned bullish, moving above its zero line with good strength as indicated by the strong and rising green histograms. If price were to break above $11.60, there is a good chance price can go higher to the previous high of $12.14 back in Aug 2018. Price should not close the gap it created 3 days ago. A price move below $11.20 would negate the bullish view.

Strategy

$11.60 Buy
$12.12 Price Target
$11.20 Risk Management Stop
2 weeks Trade Duration

Tencent Stock Code 0700.HKE

Outlook

Price moved above its Bollinger Band yesterday in a strong candlestick pattern, closed the day just below the previous high of HK328.40, which was 4^th of Dec 2018 high. RSI had managed to stay above 45 reading and is now crossing over the 60 reading. There is still room for RSI to follow price higher. Overhead, there is a price gap from HK343.60 to HK355.40. We think price should be able to move up to test this gap resistance. On the downside, price need to stay above HK310 to be bullish. A move below HK310 would negate our bullish view.

Strategy

HK327.60 Buy
HK345 Price Target
HK309.50 Risk Management Stop
2 weeks Trade Duration

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