Alibaba Tencent The Latest Twists and Turns
Alibaba's (9988) and Tencent's (700) share prices have rebounded after suffering heavy losses last week, however their technical outlook has not confirmed upturns.
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Alibaba (9988): No Upturn Signal Yet
Chinese tech giant Alibaba's (9988) share price plunged 10.7% last week, amid concerns over antitrust scrutiny. The company announced on Monday that its board has authorized to upsize the company's share repurchase program from US$6 billion to US$10 billion through the end of 2022. Its share price has rebounded by more than 7% from Monday's low of HK$207.20.
Source: GAIN Capital, TradingView
Tecent (700): Downside Pressure Intensifies
On a daily chart, Tecent (700) remains under pressure after breaking below a rising trend line drawn from March. In fact, it has formed a runaway gap on Monday, suggesting strong bear moves. The level at HK$563 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at HK$500 and HK$467 respectively.
Chinese tech giant Alibaba's (9988) share price plunged 10.7% last week, amid concerns over antitrust scrutiny. The company announced on Monday that its board has authorized to upsize the company's share repurchase program from US$6 billion to US$10 billion through the end of 2022. Its share price has rebounded by more than 7% from Monday's low of HK$207.20.
Source: GAIN Capital, TradingView
However on a daily chart, Alibaba (9988) has not yet confirmed an upturn despite the most recent rebound. It has stabilized after approaching the 161.8% Fibonacci extension level, however the relative strength index has not shown bullish divergence and its upside potential could be limited by the bottom of its previous trading range. The level at HK$246.00 might be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at HK$207.20 and HK$180.60 respectively.
Tecent (700): Downside Pressure Intensifies
Source: GAIN Capital, TradingView
Similarly, Tecent (700) has lost 4.1% in the prior week, the largest decline since September, as investors were worried that there might be more antitrust investigations into tech giants by Chinese regulator.
On a daily chart, Tecent (700) remains under pressure after breaking below a rising trend line drawn from March. In fact, it has formed a runaway gap on Monday, suggesting strong bear moves. The level at HK$563 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at HK$500 and HK$467 respectively.
Alibaba (9988): No Upturn Signal Yet
Chinese tech giant Alibaba's (9988) share price plunged 10.7% last week, amid concerns over antitrust scrutiny. The company announced on Monday that its board has authorized to upsize the company's share repurchase program from US$6 billion to US$10 billion through the end of 2022. Its share price has rebounded by more than 7% from Monday's low of HK$207.20.
Source: GAIN Capital, TradingView
Tecent (700): Downside Pressure Intensifies
On a daily chart, Tecent (700) remains under pressure after breaking below a rising trend line drawn from March. In fact, it has formed a runaway gap on Monday, suggesting strong bear moves. The level at HK$563 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at HK$500 and HK$467 respectively.
Chinese tech giant Alibaba's (9988) share price plunged 10.7% last week, amid concerns over antitrust scrutiny. The company announced on Monday that its board has authorized to upsize the company's share repurchase program from US$6 billion to US$10 billion through the end of 2022. Its share price has rebounded by more than 7% from Monday's low of HK$207.20.
Source: GAIN Capital, TradingView
However on a daily chart, Alibaba (9988) has not yet confirmed an upturn despite the most recent rebound. It has stabilized after approaching the 161.8% Fibonacci extension level, however the relative strength index has not shown bullish divergence and its upside potential could be limited by the bottom of its previous trading range. The level at HK$246.00 might be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at HK$207.20 and HK$180.60 respectively.
Tecent (700): Downside Pressure Intensifies
Source: GAIN Capital, TradingView
Similarly, Tecent (700) has lost 4.1% in the prior week, the largest decline since September, as investors were worried that there might be more antitrust investigations into tech giants by Chinese regulator.
On a daily chart, Tecent (700) remains under pressure after breaking below a rising trend line drawn from March. In fact, it has formed a runaway gap on Monday, suggesting strong bear moves. The level at HK$563 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at HK$500 and HK$467 respectively.
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