Tencent Holdings Ltd Stock Forecast

Tencent Holdings Ltd stock price up 3.23% on Wednesday
(Updated on Apr 24, 2024)

TCEHY Signals & Forecast

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 $40.27 and $38.22. 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 28.74%. Further rise is indicated until a new top pivot has been found. 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. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

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 $37.00 and $34.98. 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 $37.00. If this is broken, then the next support from accumulated volume will be at $34.98 and $34.94.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $0.360 (0.83%) between high and low. For the last week, the stock has had daily average volatility of 0.92%.

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 and the RSI is still moving upwards. 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: $42.54 (-2.98%) (This stock has low daily movements and this gives low risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 35 days ago.)

Trading Expectations (TCEHY) For The Upcoming Trading Day Of Thursday 25th

For the upcoming trading day on Thursday, 25th we expect Tencent Holdings Ltd to open at $43.74, and during the day (based on 14 day Average True Range), to move between $43.02 and $44.68, which gives a possible trading interval of +/-$0.83 (+/-1.90%) up or down from last closing price. If Tencent Holdings Ltd takes out the full calculated possible swing range there will be an estimated 3.80% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $37.00, some $6.85 (15.62%) from the current price of $43.85, 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.

Current score: 7.375 Strong Buy Candidate Unchanged

Predicted Opening Price for Tencent Holdings Ltd of Thursday, April 25, 2024

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