Tencent Holdings Limited Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Stronger technical forecast for Tencent Holdings Limited stock price after Monday trading.
(Updated on May 06, 2024)
The Tencent Holdings Limited stock price gained 1.59% on the last trading day (Monday, 6th May 2024), rising from HK$364.40 to HK$370.20. It has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 2.75% from a day low at HK$363.00 to a day high of HK$373.00. The price has risen in 7 of the last 10 days and is up by 21.86% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 3 million more shares were traded than the day before. In total, 26 million shares were bought and sold for approximately HK$9.70 billion.
Given the current short-term trend, the stock is expected to rise 22.13% during the next 3 months and, with a 90% probability hold a price between HK$385.05 and HK$452.13 at the end of this 3-month period.
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0700.HK Signals & Forecast
Mostly positive signals in the chart today. The Tencent Holdings Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at HK$353.94 and HK$313.36. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, March 05, 2024, and so far it has risen 38.03%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.
Support, Risk & Stop-loss for Tencent Holdings Limited stock
On the downside, the stock finds support just below today's level from accumulated volume at HK$303.80 and HK$290.80. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Tencent Holdings Limited finds support just below today's level at HK$303.80. If this is broken, then the next support from accumulated volume will be at HK$290.80 and HK$288.80.
This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved HK$10.00 between high and low, or 2.75%. For the last week, the stock has had daily average volatility of 3.08%.
The Tencent Holdings Limited stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stop-loss: HK$358.21 (-3.24%) (This stock has high daily movements and this gives high risk. The RSI14 is 88 and this increases the risk substantially. There is a buy signal from a pivot bottom found 40 days ago.)
Trading Expectations (0700.HK) For The Upcoming Trading Day Of Tuesday 7th
For the upcoming trading day on Tuesday, 7th we expect Tencent Holdings Limited to open at HK$368.73, and during the day (based on 14 day Average True Range), to move between HK$360.22 and HK$380.18, which gives a possible trading interval of +/-HK$9.98 (+/-2.70%) up or down from last closing price. If Tencent Holdings Limited takes out the full calculated possible swing range there will be an estimated 5.39% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ HK$303.80, some HK$66.40 (17.94%) from the current price of HK$370.20, our system finds the risk reward attractive.
Is Tencent Holdings Limited stock A Buy?
Tencent Holdings Limited holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Strong Buy candidate.
Current score: 6.938 Strong Buy Candidate Upgraded
Predicted Opening Price for Tencent Holdings Limited of Tuesday, May 7, 2024
Fair opening price May 7, 2024 | Current price |
---|---|
HK$368.73 ( 0.396%) | HK$370.20 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 0700.HK
Fibonacci Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 378.73 | 2.31 % | |
R2 | 374.91 | 1.27 % | ||
R1 | 372.55 | 0.636 % | ||
Current price: | 370.20 | |||
Support | S1 | 364.91 | -1.43 % | |
S2 | 362.55 | -2.07 % | ||
S3 | 358.73 | -3.10 % |
Accumulated Volume Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 0 | . | |
R2 | 0 | . | ||
R1 | 0 | . | ||
Current price | 370.20 | |||
Support | S1 | 303.80 | -17.94% | |
S2 | 290.80 | -21.45% | ||
S3 | 288.80 | -21.99% |
0700 Dividend Payout History
# | Ex-Date | Pay Date | Amount | Yield | |
---|---|---|---|---|---|
1 | May 17, 2024 | May 17, 2024 | May 31, 2024 | HK$3.40 | 0.92% |
2 | May 19, 2023 | May 19, 2023 | May 19, 2023 | HK$2.40 | 0.720% |
3 | May 20, 2022 | May 20, 2022 | May 20, 2022 | HK$1.60 | 0.454% |
4 | May 24, 2021 | May 24, 2021 | May 24, 2021 | HK$1.60 | 0.273% |
5 | May 15, 2020 | May 15, 2020 | May 15, 2020 | HK$1.20 | 0.285% |
FAQ
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