What to expect from Chinese Tech Giants Alibaba and Tencent?
George Lam October 15, 2020 1:42 PM
Alibaba and Tencent will report quarterly results in November, while Reuters reported today that Alibaba's Ant Group could be blacklisted by the Trump administration...
Alibaba Group (9988.hk): Consolidate Before Next Rally
From a technical point of view, Alibaba Group remains trading within a bullish channel drawn from May as shown on the daily chart. However, it might have formed a bearish shooting star candlestick on Wednesday, while there are signs of a bearish RSI divergence, suggesting there might be a pull-back in the shorter-term. The level at $271 might be considered as the nearest support, and if this level holds, prices are still likely to test the 1st and 2nd resistance at $305 and $320 respectively.
Tencent (700.hk): Early Signs of an Upside Breakout
On a daily chart, Tencent appears to have gathered more upside momentum as it just broken above a 3-month bullish consolidation range, following a rally in the second quarter. The level at $528 might be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at $584 and $630 respectively.
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.