Tencent... is it good to bottom pick now?
My Humble Opinion on Tencent
Currently, the price is in the consolidation zone. Note that the "consolidation" process is a neutral term. It does not have a bullish or bearish bias. It just means that there are BOTH buyers and sellers interested within that narrow range. Hence there is a lot of transactions for a long period.
Over a period of time, either the sellers will run out of interest or the buyers will. When this happens, the price will move accordingly. Given that the primary uptrend is still intact, we can safely assume a small bullish bias on this consolidation. This does not mean that price will be 100% supported. It just means that the chances of price going up are slightly higher.
Should the price falls below 400 into the Bear Territory, traders will need to get the hell out. Value Investors might need to relook at the fundamentals before blindly averaging down.
If the price heads up after the consolidation, we will expect some form of selling pressure at 525 to 580. So do not expect a sharp recovery.
If I am looking to trade this, I will not touch Tencent until the price can recover above 600 (Bull Territory)
On the other hand, Value Investors may continue to pick up these stocks during this consolidation phase IF this company is aligned with your investment goals (certainly not aligned with mine)
Personal Verdict: Stay the hell away!
Currently, the price is in the consolidation zone. Note that the "consolidation" process is a neutral term. It does not have a bullish or bearish bias. It just means that there are BOTH buyers and sellers interested within that narrow range. Hence there is a lot of transactions for a long period.
Over a period of time, either the sellers will run out of interest or the buyers will. When this happens, the price will move accordingly. Given that the primary uptrend is still intact, we can safely assume a small bullish bias on this consolidation. This does not mean that price will be 100% supported. It just means that the chances of price going up are slightly higher.
Should the price falls below 400 into the Bear Territory, traders will need to get the hell out. Value Investors might need to relook at the fundamentals before blindly averaging down.
If the price heads up after the consolidation, we will expect some form of selling pressure at 525 to 580. So do not expect a sharp recovery.
If I am looking to trade this, I will not touch Tencent until the price can recover above 600 (Bull Territory)
On the other hand, Value Investors may continue to pick up these stocks during this consolidation phase IF this company is aligned with your investment goals (certainly not aligned with mine)
Personal Verdict: Stay the hell away!
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