Tencent break in uptrend structure - Bearish
Tencent has eventually broken below the Uptrend structure after fantastic upside.
This means, the price is now in free fall and is more likely to touch the previous support (brim level of the last Cup and Handle ).
21<7 price>200 - Reversal
RSI <50 - Bearish
Target 312
I just did an analysis on Naspers which we spoke...
Tencent has bounced of a support line "buy point 2" and is now close to a resistance level. There have recently been positive catalysts around Chinese stocks, such as the "Golden Share" and SEC reporting. The MACD indicator is close to a crossover.
Key Markets
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Accompanied are the momentum readings for multiple time frames starting at 15, 30, 60 and 120-min.
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HKEX:700
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I use this platform as a way to organize my thoughts and plan for my personal trading for the sessions to come. Do not misconstrue this newsletter as actionable trading advice. I am simply sharing my thoughts as a market operator through this newsletter, which helps me get my head...
Price action and chart pattern trading: a possible rebound scenario
> Elliott Wave projection - falling zigzag ABC correction wave channel now at C-wave 0.786 extension of A-wave at the key level support.
> Downtrend target reversal position of the major top HEAD & SHOULDERS with double bullish divergence signal
> Target rebound > SMMA 50 key upper resistance POC
Read latest articles here , here and here .
There is a Chinese saying that "Big trees attract the wind" which means that a tech giant like Tencent has certainly has the Central government hawkish eyes on them for a long , long time. The recent slew of measures imposed on them over the last few months seems like a bottomless pit (as one of my followers said...
The second position opened at 290.96 and closed at 279.02, with the volatility rising I decide a protective approach, in order to protect my profit. But my vision is still Short, let's see what will happens
Very weak. Wait until it stabilizes on the lower time frame. Gap at 305.80 close to being filled. Trading at more than 2 standard deviation over 20-days this ultra short term rebound possible.
Very weak. Wait until it stabilizes on the lower time frame. Note the downside gap at 306.00 which has potential to close. Trading at 2 std deviation over 20-days thus rebound inti underside of EMA's is possible."
Price has played out as my last analysis. Price is currently mitigating the bearish POI at 321.0. On its way up, it created sell-side liquidity. Right now we should keep a lookout on the lower timeframe for confirmation to see if price wants to continue upwards. From here, the most probably move will be a bearish retracement to take out the sell-side liquidity.
Price is playing out precisely as analyzed. we have now filled the fair value gap at 310.2 and took the sell-side liquidity. From here, I'd expect the price to bounce off to the upside before continuing lower. We could also see price reverse from here.
Slightly risky play hence small position should suffice.
HSI + Futures are seem to have found bottom here, good position for breakout play, nice risk to reward ratio too.
Price is playing exactly as analyzed last week. Price took out sell-side liquidity below and is now deciding where to go. I'm leaning towards the price going lower to fill some price inefficiency at 310.2 before going higher.
On the h4, with price moving in a descending trendline and below the ichimoku cloud, we have a bearish bias that price will continue to drop from the sell entry at 353.6 in line with the pullback resistance, 100% fibonacci projection and 127.2% fibonacci extension to the take profit at 297.2 at the swing low in line with the 78.6% fibonacci projection....
![700: Key Markets [Snapshot] - Friday 06 January 2023](https://s3.tradingview.com/u/u9ivD1Wm_mid.png "Key Markets [Snapshot] - Friday 06 January 2023")
