Tencent Holdings Ltd. (TCEHY) released its Q2 earnings numbers and the stock is weaker. Let's check out the charts of this gamer.
In this daily chart of TCEHY, below, we can see that prices are below the rising 50-day and 200-day moving average lines. Moving averages are lagging indicators so that is not a surprise.
The trading volume looks like it has increased this month from July and that is bearish as prices have been declining.
The On-Balance-Volume (OBV) line shows softness this month signaling more aggressive selling.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has moved below the zero line for an outright sell signal. A close below the late May low will turn this chart more bearish.
In this weekly chart of TCEHY, below, we can see that prices are below the rising 40-week moving average line.
The weekly OBV line shows a four month double top pattern and the MACD oscillator is getting close to crossing below the zero line.
In this Point and Figure chart of TCEHY, below, we can see a possible downside price target of $37. A trade at $40.58 will weaken this chart.
Bottom line strategy: The charts of TCEHY look weak and a close below the May low is likely to precipitate further declines for this gamer.