TENCENT is a solid company that has been hit from the ongoing turbulence in the region.
The chart shows us that practically since January the stock gradually entered in a long 4th wave (down).
The projections of this move gave a target (black line) not far from the low of past Friday.
In addition Momentum shows that the stock is deeply oversold.
So, with solid Fundamentals, with Wave 4 almost over and with Momentum in deeply oversold area, I see an opportunity in the upcoming 5th Wave.
The chart shows us that practically since January the stock gradually entered in a long 4th wave (down).
The projections of this move gave a target (black line) not far from the low of past Friday.
In addition Momentum shows that the stock is deeply oversold.
So, with solid Fundamentals, with Wave 4 almost over and with Momentum in deeply oversold area, I see an opportunity in the upcoming 5th Wave.
Comment:
Price broke the line as to my initial chart. Looking at the longer term chart, TENCENT remains deeply oversold. When a stock is deeply oversold it does not mean that it will bounce immediately. It is just an indication. What I see at the longer term picture is that the correction of TENCENT has not ended. We may be in a reaction but the pattern is still not over. Therefore entering at lower levels is the most probable strategy. I like a lot this company and I believe that it is undervalued but for now price action must be respected.
Comment:
I expect now a reaction as 4 and later on one more move down. But first let's see if we have an immediate rebound for TENCENT