We’ve been waiting patiently for a good buying level on Tencent Holdings (TCEHY). The volatility in the chinese internet space is giving us an opportunity to grab this stock at a discount. (December 01, 2017)Don’t forget that the 30 Day Free Trial ends tonight at midnight – https://stockmarketmentor.com/member-signup/?coupon=freetrialwebinar
Tencent Holdings ( OTCMKTS: TCEHY ), a big Chinese investment company. I look at this as almost like an Internet ETF. They are talking about swapping some shares with Spotify, which isn’t due to go public until next year. Now, they have also recently bought some Snapchat ( NYSE: SNAP ) so maybe not everything they touch turns to gold.
I have been saying for a while now as Tencent ( OTCMKTS: TCEHY ) was up here; “Hey, if you want to buy this stock don’t buy it now.” Wait; this is a long-term hold. Therefore, since it is a long-term hold, you don’t have to be in a hurry to buy it because it is not like you are going to sell it right away. When the stock is up like it was here it is not like you are in danger of missing out on the next big skyrocketing move to $100.00. The stock is in a trend, we can draw a line around the highs, it is up at the top of the trend here, it has actually popped out the top. It is not going to keep going. It is a long-term hold, wait for the stock to give you an entry.
The stock was up here, $56.00, now it is down how much? It is down 12 percent. This is your entry right here. Maybe it will get even more of a pullback here but what we have been wanting to do is, for a long-term hold, we have wanted to buy an uptrending stock, strong fundamentals, great prospects, on a dip. There has been general weakness in Chinese Internet stock so of course this is going to be a pullback but it is still China, everything is still good.
So you use this opportunity to buy this stock. I would maybe dip a toe, take a little bit and then pray for more of a pullback. Maybe you even get a pullback to the 50-day moving average; that would be great. That would probably shake out more people but this is not the top. If this is the top of Tencent ( OTCMKTS: TCEHY ) then the market, in general, has some big problems. This is the pause that refreshes. I don’t think you need to rush in and buy this stock first thing in the morning on Monday. But I would use this pullback below 50.00 to at least have an opportunity to start a position here (I am just setting a little alert for myself here). If the stock moves back above $50.00 then I am probably going to want to take some here. If the stock falls back to 46.00 I will definitely want to take some stock there too.
I hope this helps you on this. I could co a Chart of the Day on any chart but I was looking at Tencent Holdings ( OTCMKTS: TCEHY ) and I was thinking, “I think this is ultimately going to turn out to have been a really good buying opportunity.” Not as good as coming out of a base but hey, when it is on a tear like it’s on, you see the big massive volume here, on the upside, more massive volume on the downside. This is a shakeout, take advantage of it, buy the stock.