JICPT| Tencent approaching key bullish structure, buy the dip!
Tencent has dropped from its peak level in Feb. by more than 30% till today. The demand zone of 555-579 failed to hold after the second revisit.
The market cap is still over $700B after the drastic fell due to investor's concerns of regulation squeeze. It all went back to Jack Ma's speech at the Bund Summit in Shanghai in Oct. 2020. We all know what happened after that. The sudden suspension of Ant group IPO was just the start...Then came with the fine and tightened regulation on personal data usage and protection. That affected all Chinese tech companies who have minimum regulation in the past. The crackdown on the tech companies impact its valuations and triggered sell-off from investor due to the uncertainty.
So, that's a brief explanation of why Chinese tech stocks suffered a great loss this year. what's next?
First of all, what's the motivation behind the regulator? Does it want to shut down those super-star companies who were regarded as the proud of the nation in the past? Definitely no!
I know the recent 22 investigation on those tech companies, but the fine is capped at RMB 500K, less than $100K. That's nothing. Maybe, investors are sort of overreacted.
So, let's get back to the technical side. On the chart, I note the price is approaching my long-term MA in red color around 477. Beside, the level is also a flip level. That's an odds-enhancer.
Personally, my investment portfolio has exposure to Tencent. The recent drop did not make me scared, instead, I'm ready to buy for my long-term return!
So, this is not a trading idea. Sometime, we need to be patient.
Give me a like if you're with my idea. It's Friday night here in China. Take care and enjoy your weekend.
The market cap is still over $700B after the drastic fell due to investor's concerns of regulation squeeze. It all went back to Jack Ma's speech at the Bund Summit in Shanghai in Oct. 2020. We all know what happened after that. The sudden suspension of Ant group IPO was just the start...Then came with the fine and tightened regulation on personal data usage and protection. That affected all Chinese tech companies who have minimum regulation in the past. The crackdown on the tech companies impact its valuations and triggered sell-off from investor due to the uncertainty.
So, that's a brief explanation of why Chinese tech stocks suffered a great loss this year. what's next?
First of all, what's the motivation behind the regulator? Does it want to shut down those super-star companies who were regarded as the proud of the nation in the past? Definitely no!
I know the recent 22 investigation on those tech companies, but the fine is capped at RMB 500K, less than $100K. That's nothing. Maybe, investors are sort of overreacted.
So, let's get back to the technical side. On the chart, I note the price is approaching my long-term MA in red color around 477. Beside, the level is also a flip level. That's an odds-enhancer.
Personally, my investment portfolio has exposure to Tencent. The recent drop did not make me scared, instead, I'm ready to buy for my long-term return!
So, this is not a trading idea. Sometime, we need to be patient.
Give me a like if you're with my idea. It's Friday night here in China. Take care and enjoy your weekend.
Comment:
Price didn't fall that deep as I estimated, before pulling back again.
Comment:
The downtrend is still pending violation. Buyers need to be patient.
plan your trade and trade your plan
