Shanghai, Tencent, Naspers and Alibaba – 20 May 2024
SHANGHAI COMPOSITE: DAILY
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Long term:
The ABC bearish correc-tion was completed around S2.
- The resulting break of P has further confirmed the expected 12345 bull trend to T1 and T2 where a meaning-ful top might develop.
Medium term:
The Sharpness of phase 1 and formation type of phase 2 point to the possibility of an extended bull trend to R1 and eventually T2.
- A break back below S0 will mean further S0/S1* consolidation before the illustrated bull trend can further materialize.
Current conviction:
Medium to high.
Levels:
S1* must hold for the general bullish outlook to remain valid.
ALIBABA: DAILY
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Long term:
The expected break out of the L defined bear phase is gaining momentum and the illustrated upside to the TA target area is retained.
- The illustrated scenario is an at-tempt to visually portray the general bullish outlook and not exact moves
Medium term:
The first important tar-get resistance is at R0*.
- Overbought and diverging RSI con-ditions favour an interim correction consolidation between R0 and S0 as the 4th phase of the current upside to R1.
- These moves are part of the general bullish outlook.
Current conviction:
Medium to high.
Levels:
S0* must hold for both the long and medium term bullish outlook to remain valid.
TENCENT: DAILY
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Long term:
The expected break out of the L defined bear phase is gaining momentum and the illustrated impul-sive upside to T2 is materializing.
- The target area is where A= C in length and the PQ formation is com-pleted.
Medium term:
- The first important target re-sistance at T1 should result in a phase 4 correction towards S1*.
- Overbought RSI conditions confirm the interim consolidation stance.
- These moves should remain part of the general bullish outlook.
Current conviction:
Medium to high.
Levels:
S1* must hold for both the long and medium term bullish outlook to remain valid.
NASPERS: DAILY
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Long term:
The expected bull trend out of the PQ continuation pattern, is materializing.
- The eventual target is at T2 where the long term ABC formation would be completed.
Medium term:
The initial T1 target has been reached and effecting an interim price reversal.
- A bearish correction towards S0* is likely as phase 4 of the larger bull trend to T2 over time.
Current conviction:
Medium to high
Pivotal level:
Trading below S0* will neutralize the medium term bullish outlook.
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Red Line: “Roadmap” – A visual representation of proba-ble future price action. A perforated red line suggest various proba-ble outcomes with the perforated line being
Blue Line: Trend Lines that constitute important sup-port / resistance or break levels
TA – Target area
MA – Moving average
R – Resistance
RA – Resistance area
MR – Minor Resistance
MS – Minor Support
MTR – Medium Term Resistance
MTS – Medium Term Support
SA – Support Area
S – Support
T – Target
* or ** – Significance of level