Tencent Holdings Ltd Stock Forecast

A very strong day for Tencent Holdings Ltd stock price on Thursday
(Updated on May 02, 2024)

TCEHY Signals & Forecast

Mostly positive signals in the chart today. The Tencent Holdings Ltd 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 $44.44 and $39.75. 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 38.43%. 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 Ltd stock

On the downside, the stock finds support just below today's level from accumulated volume at $42.48 and $36.91. 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 Ltd finds support just below today's level at $42.48. If this is broken, then the next support from accumulated volume will be at $36.91 and $36.05.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $1.60 between high and low, or 3.49%. For the last week, the stock has had daily average volatility of 1.67%.

The Tencent Holdings Ltd 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: $45.61 (-3.26%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 87 and this increases the risk substantially. There is a buy signal from a pivot bottom found 41 days ago.)

Trading Expectations (TCEHY) For The Upcoming Trading Day Of Friday 3rd

For the upcoming trading day on Friday, 3rd we expect Tencent Holdings Ltd to open at $46.84, and during the day (based on 14 day Average True Range), to move between $46.15 and $48.15, which gives a possible trading interval of +/-$1.00 (+/-2.12%) up or down from last closing price. If Tencent Holdings Ltd takes out the full calculated possible swing range there will be an estimated 4.25% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $42.48, some $4.67 (9.90%) from the current price of $47.15, our system finds the risk reward attractive.

Is Tencent Holdings Ltd stock A Buy?

Tencent Holdings Ltd 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 Buy to a Strong Buy candidate.

Current score: 7.025 Strong Buy Candidate Upgraded

Predicted Opening Price for Tencent Holdings Ltd of Friday, May 3, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.