Trading Ideas

My Tencent worth…



My Tencent worth… by SchalkLouw on TradingView.com

Following most Chinese Internet Companies, #Tencent succumbing to the Trump tax-blow. A breakthrough it’s 6-month support line does not paint a pretty picture for the share price going forward. N

 

Next support level could be around the lows of March (350HKD), with a break most probably testing the 200-day moving average at 334HKD. Share price has lost a lot of its strong momentum and would I either wait for a better “tweet” from Trump or for momentum to turn. Although the share price is somewhat oversold according to it’s 14-day RSI, I would add to wait for it to dip below the 30 mark.

 

The longer-term outlook for the company is still looking positive with a consensus (according to Thomson Reuters) target price of 425HKD. Be patient…

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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