$TENCENT(00700.HK)

HKD 700 -> HKD 499 : Is Tencent Finally Cheap Enough? 🤔

Tencent Holdings is testing critical support after a prolonged correction. Currently trading at HKD 499.0 (+1.18%), the tech giant is at a pivotal juncture for Q2 2026.

🔷Technical Analysis (HTF)

The higher timeframe trend remains bearish, correcting significantly from the HKD 700 highs seen in late 2025. On the daily chart, price action is compressing near the lower Bollinger Band (464.6).

♥️Resistance:The 20-day SMA (blue line) at 507.1 acts as the immediate ceiling. A close above this is required to signal a short-term reversal.

♥️Support:The lower band at 464.6 is the critical safety net.

♥️Momentum: RSI sits at 40.23—neutral territory. It is recovering from March oversold levels but lacks strong bullish divergence yet.

🔷Fundamentals & Valuation

In 2026, Tencent remains a cash-flow fortress in gaming and fintech. With the stock down ~30% from its peaks, valuation multiples have compressed. While explosive growth has normalised, the company continues aggressive share buybacks.

Around HKD 500 , the stock is transitioning from a “momentum” play to a “value” play, offering a more attractive entry point for long-term holders compared to a year ago.

🔷The Verdict

NEUTRAL.The stock is attempting to stabilise but the trend is not yet. Bulls need to reclaim HKD 507 to confirm a bounce. Expected choppy sideways action between 465 and 510. Watch the lower band closely; a break below could trigger further selling.

Not financial advice. Always do your own DD! Risk management.