Tencent Holdings Limited (TCEHY) is currently trading between $62–$64, maintaining structure within a well-defined ascending channel. After testing the $73 resistance level—a key price from 2020—the stock faced rejection, triggering a retracement phase and a shift into a daily consolidation range.
This range now appears to be forming a short-term descending pullback channel, potentially continuing into June–July. Based on historical price action, the next key demand zone sits between $55–$60, a level that served as multi-year support and resistance from 2018 to 2024. A revisit of this zone would likely draw strong buying interest, making it a high-probability long opportunity.
Technical Levels to Watch:
Buy Zone: $55–$59 (long-term structural support)
Mid-Term Resistance: $73 (tested and rejected, but weak)
Breakout Target: $80–$81 (resistance from 2020)
Major Upside Level: $99 (2021 all-time high)
From a macro perspective, Tencent is strongly positioned in China’s growing tech ecosystem, with diversified operations across gaming, artificial intelligence, and quantum technologies. These sectors remain critical to the country's long-term innovation strategy.
If Tencent successfully holds the $55–$60 support zone and regains momentum, a move toward $80–$81 by September becomes plausible. A confirmed breakout above that range would put $99 back on the map, opening the door for new all-time highs into late 2025.
Conclusion:
Current market structure suggests we may be entering a healthy retracement phase within a larger bullish trend. The $55–$59 zone offers a favorable risk-reward area for long-term positions, with strong upside potential as Tencent continues to align with China’s tech-driven growth narrative.
This range now appears to be forming a short-term descending pullback channel, potentially continuing into June–July. Based on historical price action, the next key demand zone sits between $55–$60, a level that served as multi-year support and resistance from 2018 to 2024. A revisit of this zone would likely draw strong buying interest, making it a high-probability long opportunity.
Technical Levels to Watch:
Buy Zone: $55–$59 (long-term structural support)
Mid-Term Resistance: $73 (tested and rejected, but weak)
Breakout Target: $80–$81 (resistance from 2020)
Major Upside Level: $99 (2021 all-time high)
From a macro perspective, Tencent is strongly positioned in China’s growing tech ecosystem, with diversified operations across gaming, artificial intelligence, and quantum technologies. These sectors remain critical to the country's long-term innovation strategy.
If Tencent successfully holds the $55–$60 support zone and regains momentum, a move toward $80–$81 by September becomes plausible. A confirmed breakout above that range would put $99 back on the map, opening the door for new all-time highs into late 2025.
Conclusion:
Current market structure suggests we may be entering a healthy retracement phase within a larger bullish trend. The $55–$59 zone offers a favorable risk-reward area for long-term positions, with strong upside potential as Tencent continues to align with China’s tech-driven growth narrative.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.