Good morning Traders!
Hopes that the Chinese government crackdown on its Tech industry are coming to an
end, has fuelled a rally in many of China’s big tech.
Tencent
Tencent share price, has almost doubled in value since the low made in October 2022
when it pierced the 200 mark.
On the daily chart the market is now in an uptrend, however, this new Daily uptrend, can
currently also be seen as a pullback in the context of the Monthly chart which is still in a
confirmed downtrend. On the Weekly chart, the market has broke the downtrend when it
traded passed the previous swing Lower High, but has yet to confirm an uptrend. I’ll be
closely watching the level of 400, where as well as being a psychological round number
level, it also has proven to be a strong S/R level with many touches in the past.
Alibaba
Alibaba has also risen sharply from the lows it made in October 2022 around the 58 mark,
and it’s currently trading around the 118 mark.
Here too, the Daily chart is in an uptrend, and the Monthly chart in a downtrend. However
in this chart, if the level of 128 will be taken, then the Monthly chart will no longer be in a
confirm downtrend, with the 138 next in sight.
Baidu
Baidu shares also experienced similar moves, raising from the lows of around 74 printed
in October 2022 to currently trading around 140.
It’s a similar scenario here as well, however, the Monthly swing Lower High which is also
the previously tested level of S/R around the 160 mark, is further away from the current
price.
Happy Trading!
