Tencent Bullish Consolidation Despite Threats from US
Tencent share prices stay within the current bullish consolidation range, despite targeting by the US government...
Share this:
Tencent (700-hk), a Chinese tech giant, has been targeted by the U.S. government again as it is considering imposing restrictions on the company's payment system, reported Bloomberg citing people familiar with the matter. Previously, the Trump administration accused Tencent's messaging app WeChat for posing a security risk to Americans.
From a technical point of view, despite threats from the US, Tencent remains trading within a bullish consolidation range, after a rally started from March. In the shorter-term, the technical outlook is rather neutral as its share price hovers around both the 20-day and 50-day moving averages. Nevertheless, as long as the level at $500 holds as a support, Tencent is still likely to test the 1st and 2nd resistance at $564 and $583. Alternatively, a break below $500 would be a cautious signal for a downturn and the next support at $481 might be exposed.
Source: Gain Capital, TradingView
Tencent (700-hk), a Chinese tech giant, has been targeted by the U.S. government again as it is considering imposing restrictions on the company's payment system, reported Bloomberg citing people familiar with the matter. Previously, the Trump administration accused Tencent's messaging app WeChat for posing a security risk to Americans.
From a technical point of view, despite threats from the US, Tencent remains trading within a bullish consolidation range, after a rally started from March. In the shorter-term, the technical outlook is rather neutral as its share price hovers around both the 20-day and 50-day moving averages. Nevertheless, as long as the level at $500 holds as a support, Tencent is still likely to test the 1st and 2nd resistance at $564 and $583. Alternatively, a break below $500 would be a cautious signal for a downturn and the next support at $481 might be exposed.
Source: Gain Capital, TradingView
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Nikkei threatens breakout as tech rebound broadens
Breakouts across the SOX and Nasdaq are being matched by rebounds across Asia, with the Nikkei now threatening to join the move.
S&P 500, Nasdaq 100 Forecast for the Week Ahead
A hawkish Fed and 10-Year Notes on the verge of a push above 5%, yet stocks have so far shrugged off that fear. But can it continue?
Hang Seng Tech rout nears make-or-break zone
The technical damage is clear, but with Hang Seng Tech now deeply stretched and approaching major support, the risk-reward is becoming more two-sided.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.