One of the leading internet companies in Mainland China Tencent (0700.HK) would be announcing its results tomorrow. Thanks to the rocketing market of online games, mobile phone games, as well as the profits led by ShangHai world Expo, CLSA estimated that the profits in 2nd Quarter would be around 1.8B (RMB). This may give a hard push to the price upwards. Technically, let's look at the daily chart.
Obviously, 250-day SMA is currently touching 50-day SMA. If the price could be pushed upwards tomorrow and 50SMA successfully crosses 250SMA, this would be a good bullish sign to long Tencent.
Also, the price now is testing 61.8% fibs level. Such a hard resistance can only break due to large news such as results announcement tomorrow.
Let's move on to a longer timeframe.
The previous candlesticks were either bullish rejections or big white sticks. The stock is obviously in up-trend. However, it is testing its long-term resistance (red-line) too.
Both daily and weekly chart shows that the price is facing a very big resistance now. Once it breaks, the momentum upwards would be large.
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