Is it time for $TME? – January 4, 2024
This is Scott McGregor with your Chart of the Day. I want to take a look at a China stock, Tencent Music ( NYSE: TME ).
TME ( NYSE: TME ) is building, what looks to be, a bit of a cup and a handle pattern, and is at a pretty clear level of resistance. If I zoom out here, we can see this level, right around $9.00, has been pretty important all the way back to 2021.
You can see back here, that September 2021 was an area of resistance. And it tried it again in October. Tried it again in November, and then puked. Ever since then though, it rebounded and has been stopped once again at $9.00. And so I think that $9.00 is definitely an area you want to pay attention to.
Look for a strong move through, let’s say, 9.20 coming on higher than average volume. I am going to set an alert here on my software and look for a potential breakout through that level. While the rest of the stock market has been a little wary, Chinese stocks have actually been holding up pretty well.
Of course, with any stock that is overseas, whether it is China or elsewhere, I believe you do have to extend a little bit of extra caution, just because you never really know because it’s not based in this country. And so I would recommend smaller positions on overseas stocks, just as my own caution, that’s what I do myself, so I want to extend that idea to you.
I would definitely keep an eye on Tencent Music ( NYSE: TME ) for a move through that 9.20 region, coming on higher than average volume.
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