Shanghai, Tencent, Naspers and Alibaba – 20 May 2024

A selection of requested markets.
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SHANGHAI COMPOSITE: DAILY

VIEW RETAINED: BULL TREND TO T1 AND T2

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Level: 3175

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

VIEW RETAINED: BULL TREND MATERIALIZING

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Level: 8840

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

VIEW RETAINED: BULL TREND TO T1 AND T2

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Level: 39400

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

VIEW RETAINED: BULLISH CONTINUATION PATTERN

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Level: 3908.00

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.

This report is for informational purposes only, does not constitute an offer, or solicitation to trade and should not be construed as a recommendation, or advice, to enter into, or to refrain from entering into, any transaction.

Whilst the information herein contained is believed to be reliable, no responsibility is assumed by Hite Investments and Consulting, (Pty) Ltd., their employees, associates, external contributors, or any of the references used, for any errors, or omissions, or for losses of any nature which may arise from any opinion expressed herein.

You are cautioned that information is not necessarily complete and that opinions of individuals employed at the above may differ, or be based on contrary analysis techniques andthat opinions may change over time.

The losses in trading and investing can be substantial and you should not engage in such trading and investing unlessyou fully understand all the potential risks.

The views expressed in this report may change over time and updated reports will not necessarily be issued should this occur.

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

The intention of this analysis is to give the reader a visual picture of the most probable price path that could develop over time. This is enhanced by adding crucial levels where the proposed view becomes dubious and needs to be re-assessed (or confirmed). The benefit of this approach is that of an easy to understand and almost instantaneous grasp of the analysts view. This kind of analysis is not intended to be exact in predicting levels, and especially timing of moves, but to give a more general probability view that is easily understandable and unambiguous. The proposed “roadmap” gets adjusted over time as new price information becomes available. All technical views have re-assessment or negation levels where the proposed preference is no longer valid or needs to be re-assessed.