Tencent Holding Limited is the Chinese multinational technology conglomerate investment holding company mainly involved in various Internet-related services and products, including in entertainment, artificial intelligence, and other technology.
The Company works in three main segments. The value-added services division is principally involved in provision of online/mobile games, community value-added services and applications across various Internet and mobile platforms. The Online Advertisement segment is generally engaged in display based and performance based advertisements. The third division is principally involved in provision of payment related services, cloud services and other services.
From a fundamental analysis perspective, the company has continued to show strong gains, as its earnings have doubled from 237.8 billion CNY in 2017 to an estimated 476.7 billion CNY in 2020. In US Dollars the 2020 estimate amounts to almost 70 billion USD revenue.
In the meantime, the company's stock price in HKD has surged from 380.00 levels at the start of the year to testing the 550.00 level in summer. Namely, the stock price has surged by almost 50.00%.
Medium Term Technical Analysis for 0700.HK/HKD
As apparent on the chart, Tencent Holdings stocks have been trading sideways between the 503.00 and 562.50 levels since the beginning of August.
From a theoretical perspective, it is likely that the stocks could continue to consolidate in the medium term.
On the other hand, the stocks could gain support from the 200-period moving average, currently located near 483.50, and extend gains in the medium term.
Additionally, it is unlikely that bears could prevail in the market, and the stocks could decline below the Fibonacci 38.20% retracement at the 457.38 mark.