Tencent Music Entertainment Group - (TME) - September 26, 2024

Tencent Music Entertainment Group (TME) emerged as a standout performer in the SIA relative strength (RS) rankings for the latter part of 2023, despite a brief dip in the SIA International ADR Matrix Report. This downturn was short-lived, and TME shares are now back in the favored zone of the report. Examining the weekly candlestick chart, we've highlighted several key points. The first, marked in red, indicates when TME crossed above the 50-week moving average in early 2021. Following this, shares fell sharply from $18 to below $3 at their lowest point. However, in early 2023, TME broke above the 50-week moving average again and established a base for a summer rally, which ultimately tapered off. Currently, shares are outperforming, buoyed by a significant stimulus package from China. Resistance levels for potential rallies are expected between $16 and $18, with a more substantial barrier at the $30 mark for these previously beaten-down stocks.

The Point and Figure analysis presents a similar outlook, indicating that TME is indeed outperforming but facing significant overhead resistance. Support is noted at $9.34, with a stronger level at $6.94. Resistance levels to watch are $14.15, $15.62, and $19.05. The potential upside target is at $31.87 for those familiar with the explosive nature of Chinese equities. With an SMAX score of 8 out of a possible 10, TME demonstrates strong short-term performance across various asset classes. The shares are currently showing excellent relative strength compared to other investment classes and its peer group within the SIA International ADR universe.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.