Tencent Holdings (0700.HK)

Key summary on TCH (0700.HK) -

As part of the new Hang Seng Tech Index, Tencent makes up 8.52% of the new Tech Index and Tencent Holdings operates through the following segments: Value-Added Services, FinTech and Business Services, Online Advertising, and Others. The Value-added Services segment involves online and mobile games, community value-added services, and applications across various Internet and mobile platforms. The FinTech and Business Services segment provides fintech and cloud services, which include commissions from payment, wealth management and other services. The Online Advertising segment represents display based and performance based advertisements. The Other segment consists of trademark licensing, software development services, software sales, and other services.

Looking at the daily chart, it looks like it is consolidating with the lower range at $516 and currently just above its 20MA. Looking a the weekly chart, although it has made its parabolic move up to the highs of $565, we are seeing some form of consolidation within the top range. If this continues to consolidate, it might see a higher price movement depending on the broader market trend especially when Nasdaq moves. 

One thing to take note though is the tension between India and China even though Mainstream media has always been covering the tension between US and China. India is also a big market for some of the big C-Tech (i call it China Tech) firms like Alibaba, Tencent, Xiaomi and the border tensions has recently made the India Government take some drastic moves against the chinese companies. We will need to continue to monitor the situation to see how things unfold. 

*I currently hold Tencent shares

Details of Tencent via AAStocks: http://www.aastocks.com/en/stocks/quote/detail-quote.aspx?symbol=00700

Tencent Daily

Tencent Weekly 

Analyst target price (courtesy of Tiger Brokers application)

While the focus is on equities...

On the other side of things, gold and silver has made tremendous runs over the past 2 weeks and the run has been parabolic.

One should not chase these two precious metals at this moment and should wait for pullbacks to find a good entry.

Looking at gold, the consolidation has been taking place since April and recent breakout has made a tremendous 9.63%. Looking at Gold futures which is currently trading at 1929 and the massive news coverage on Gold, it is likely to push higher for the next few days due to retailers joining in and likely due for a pullback but I don't expect it to tank considering the latest news on the 1 trillion bailout package that the US government is trying to lobby. If that happens, expect Gold to make even more parabolic moves as many central governments will look to get physical gold to back their currencies.

GLD Daily

GLD Weekly



Looking at the Silver chart, it has also made diabolic moves recently and it is really relentless in its up move. I will share more insights once I go through some of the news/charts as I have not really been following Silver but if Gold moves, all the other precious metals will naturally tag along as well.

SLV Daily


SLV Weekly

My analysis of Facebook

Below is the daily chart of FB and it seems to be consolidating since 26 May within the range of $244.76 and $224.20 as per the Fibonacci retracement. A consolidation might be a sign of uptrend considering at the moment there's some distribution of funds from tech to other sectors.

It's worthwhile to take note
- for the moment that the entry for FB might be good between $218 and $224 which there is a gap fill.
- it is now trending below 50MA and will need to see how it closes this week.


*I do not own any FB shares currently.

Key point to note: It is not about how the stock prices open but more importantly how it closes for the day and week. 

Key notes over the weekend:

Looking at the Hong Kong market, Monday will be the start of the new Hang Seng Tech Index and judging from the price action movement in Nasdaq over the last 1 week, the index might not start well however Nasdaq seem to recovered slightly on Friday and major Nasdaq components (Apple, Amazon) and semi conductors (Nvidia) recovered from its intraday lows. Its weekly chart is still in an overbought state and probability of retracting is higher.

Will look to cover the following next week in lieu of the HSTI on ATMX:
- Alibaba
- Tencent
- Meituan
- Xiaomi


Nasdaq Daily:

Nasdaq Weekly:

Key notes on Microsoft:

Microsoft revenue grew 13% despite coronavirus and here’s how the company did: 

Earnings: $1.46 per share, adjusted, vs. $1.34 per share as expected by analysts, according to Refinitiv.

Revenue: $38.03 billion, vs. $36.50 billion as expected by analysts, according to Refinitiv.

However, looking at the charts, it shows a different picture where it was sold down from its highs. Using the Fibonacci as a guide, it hit its 138.2% mark and seems like it is unable to break through. Based on yesterday's close it is now below its 123.6% mark which we will need to see the weekly close to determine if it will retract back to $191.35.

*I do not own any MSFT shares currently. 

Hong Kong to launch Hang Seng Tech Index. 

This is mirroring the US Nasdaq where the top 30 tech stocks in HSI will be part of this Hang Seng Tech Index.

This will be launched from 27 July onwards and it will be interesting to see how this will mirror the US Nasdaq movements.

Some of the most valuable Chinese Internet companies as its constituents includes Alibaba Group Holding (9988.HK), Tencent Holdings (0700.HK), Meituan Dianping (3690.HK) and Xiaomi (1810.HK).

More details in the link below: http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1029097/popular-news

My view on Apple:

It has been a significant run for Apple since the February highs and March lows and relentlessly moving up to its all time high at $399.82, which is close to the $400 psychological mark.

Using the Fibonacci indicator as a guideline, it was close to its 161.8% mark and started to retrace back to the 150% mark. If it starts to consolidate at this range, it might position itself for a higher up move. Looking at the recent market moves in Nasdaq, the consolidation range might be touching $371 which is at the 138.2% mark.

Long term trend is still up.

* I do not own any Apple shares currently.

Key notes:

Markets seems to be volatile after options expiration from last Friday. Nasdaq has shown strength during the opening hours and start to sell down throughout the day. 

Stocks to take note:

- Apple

- Microsoft

- Facebook

will share the charts and see whether there is any good entry point. 

It's been a while since a new post... and will look to share some thoughts on the markets since COVID-19 has engulfed the world for the past 6 months.

Barclays to launch £5bn-plus rights issue

Getty Images

Barclays will on Tuesday launch a rights issue to raise more than £5 billion as the UK bank moves fast to come into line with British regulatory requirements on leverage, according to two people briefed on the transaction.

Antony Jenkins, who took over as Barclays' chief executive a year ago, will also unveil details to shrink the bank's balance sheet.

(Read more: Barclays to fight $453 million power fine in US court)

The moves, which echo initiatives at Deutsche Bank in recent months, will leave Barclays with a core tier one capital ratio of around 9.5 per cent under "fully-loaded" incoming Basel III rules, according to one person briefed on the plan. That ratio – which measures equity as a proportion of risk-weighted assets – brings Barclays back into line with global rivals, after a period of underperformance.

Barclays was spurred into the capital and balance sheet measures when the UK's Prudential Regulation Authority last month said it had a leverage ratio of only 2.5 per cent, after factoring in expected losses and other costs, compared with a requirement of 3 per cent.

Full Article here: CNBC