Tencent
Tencent, according to RHB Research’s technical analysis report, (October 5), is eyeing to stage a counter-trend rebound as it hit a strong support at HKD260. After crossing below the 21-day SMA line, the stock has been experiencing strong selling pressure until it reached the latest support. If the counter manages to break past the HKD273 resistance, it should climb towards the higher resistance at HKD290. On the flip side, falling below the immediate support should see a correction towards the next support level at HKD245.
CK Hutchison
This counter is poised to stage a technical rebound after it underwent a recent sharp correction. The stock has been observed forming a bullish candlestick, which indicates that selling pressure is moderating. If it breaks past the HKD44
resistance, we expect a bullish bias to emerge. The momentum should lift it towards the higher resistance pegged at HKD46.
Otherwise, falling below the HKD42 support should trigger a downside extension towards the next support at HKD40
