Daily Technical Analysis #H-0700

Dmitry Lukashov IFC Markets

Slowing sales forecast bearish for Tencent price

Tencent stock declined after the company forecast slowdown in sales in 2019. Will the Tencent price continue declining?

Hong Kong based media and entertainment group Tencent Holdings forecast sharp slowdown in video advertising sales in China in 2019. Its chief executive officer of video streaming business told Tuesday the growth rate of advertising sales on China's video platforms would decrease from 37% previously to 19%. Online advertising contributed 13.4 billion yuan ($1.94 billion), or nearly 16% of Tencent's total revenue in the first quarter of 2019. Gaming, news and video were the largest contributor to sales, accounting for 33% of revenue in the three months to March. Total revenue in the first quarter rose 16% - about a third of its pace in the same period a year earlier and the slowest revenue growth in the first quarter in 15 years. Lower revenue forecast is bearish for Tencent stock price.

H-0700 breached below MA(200) 05/24/2019 Technical Analysis IFC Markets chart

On the daily timeframe the H-0700: D1 has closed below the 200-day moving average MA(200) which is falling. This is bearish.

The Parabolic indicator gives a sell signal.
The Donchian channel indicates downtrend: it is tilted lower.
The MACD indicator gives a bearish signal: it is below the signal line and the gap is widening.
The RSI oscillator is rising after failing to breach into the oversold zone.

We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 323.15. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the Parabolic signal at 370.48. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (370.48) without reaching the order (323.15), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

Position	Sell
Sell stop	Below 323.15
Stop loss	Above 370.48

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.