Tencent (700-hk): Bullish Consolidation Despite Threats from US

Tencent share prices stay within the current bullish consolidation range, despite targeting by the US government...

Trader 2

Tencent (700-hk), a Chinese tech giant, has been targeted by the U.S. government again as it is considering imposing restrictions on the company's payment system, reported Bloomberg citing people familiar with the matter. Previously, the Trump administration accused Tencent's messaging app WeChat for posing a security risk to Americans.


From a technical point of view, despite threats from the US, Tencent remains trading within a bullish consolidation range, after a rally started from March. In the shorter-term, the technical outlook is rather neutral as its share price hovers around both the 20-day and 50-day moving averages. Nevertheless, as long as the level at $500 holds as a support, Tencent is still likely to test the 1st and 2nd resistance at $564 and $583. Alternatively, a break below $500 would be a cautious signal for a downturn and the next support at $481 might be exposed.



Source: Gain Capital, TradingView

More from Tech Stocks

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.