Tencent Music Entertainment Group Stock Forecast
Green day on Friday for Tencent Music Entertainment Group
(Updated on May 03, 2024)
The Tencent Music Entertainment Group stock price gained 3.45% on the last trading day (Friday, 3rd May 2024), rising from $13.05 to $13.50. During the last trading day the stock fluctuated 4.17% from a day low at $12.96 to a day high of $13.50. The price has risen in 8 of the last 10 days and is up by 18.84% over the past 2 weeks. Volume fell on the last day by -180 thousand shares and in total, 7 million shares were bought and sold for approximately $96.54 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock has broken the wide and strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $13.26, a level that may pose a second chance to hit a runner. According to fan-theory $14.93 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.
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TME Signals & Forecast
Mostly positive signals in the chart today. The Tencent Music Entertainment Group 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 $12.85 and $11.68. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, March 22, 2024, and so far it has risen 23.29%. 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 fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for Tencent Music Entertainment Group stock
On the downside, the stock finds support just below today's level from accumulated volume at $12.32 and $11.69. 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 Music Entertainment Group finds support just below today's level at $12.32. If this is broken, then the next support from accumulated volume will be at $11.69 and $11.04.
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 $0.540 between high and low, or 4.17%. For the last week, the stock has had daily average volatility of 3.08%.
The Tencent Music Entertainment Group stock is extremely overbought on RSI14 (80). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stop-loss: $13.11 (-2.90%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 80 and this increases the risk substantially. There is a buy signal from a pivot bottom found 29 days ago.)
Trading Expectations (TME) For The Upcoming Trading Day Of Monday 6th
For the upcoming trading day on Monday, 6th we expect Tencent Music Entertainment Group to open at $13.32, and during the day (based on 14 day Average True Range), to move between $13.08 and $13.92, which gives a possible trading interval of +/-$0.415 (+/-3.08%) up or down from last closing price. If Tencent Music Entertainment Group takes out the full calculated possible swing range there will be an estimated 6.15% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $12.32, some $1.18 (8.74%) from the current price of $13.50, our system finds the risk reward attractive.
Earnings coming up
Tencent Music Entertainment Group will release earnings BMO on Monday, May 13, 2024.The consensus among the analysts for the expected earnings (EPS) is $0.140. We will update the financials statements for Tencent Music Entertainment Group, that can be found here as soon as the records are public. Our systems has calculated a possible swing of +/- 10.34% in the first trading day after earnings release.
Is Tencent Music Entertainment Group stock A Buy?
Tencent Music Entertainment Group holds several positive signals and has broken the strong rising trend up. As the stock is also in great technical shape we, therefore, consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.
Current score: 6.838 Strong Buy Candidate Unchanged
Predicted Opening Price for Tencent Music Entertainment Group of Monday, May 6, 2024
| Fair opening price May 6, 2024 | Current price |
|---|---|
| $13.32 ( 1.33%) | $13.50 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for TME
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 13.86 | 2.67 % | |
| R2 | 13.65 | 1.14 % | ||
| R1 | 13.53 | 0.195 % | ||
| Current price: | 13.50 | |||
| Support | S1 | 13.11 | -2.86 % | |
| S2 | 12.99 | -3.81 % | ||
| S3 | 12.78 | -5.33 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 13.50 | |||
| Support | S1 | 12.32 | -8.74% | |
| S2 | 11.69 | -13.41% | ||
| S3 | 11.04 | -18.22% |
FAQ
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