One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Tencent Music Ent ADR now clears that threshold, with a jump from 78 to 83 Tuesday.
IBD's proprietary rating measures price action with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database.
History reveals that the market's biggest winners typically have an 80 or better RS Rating in the early stages of their moves.
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Tencent Music Ent ADR has climbed more than 5% past a 10.70 entry in a second-stage ascending base, meaning it's now out of a proper buy range. Look for the stock to create a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
In terms of fundamentals, Tencent Music Ent ADR has posted four quarters of increasing earnings growth. Sales growth has also increased over the same time frame.
Tencent Music Ent ADR holds the No. 8 rank among its peers in the Internet-Content industry group. Full Truck Alliance ADR, Meta Platforms and CarGurus Cl A are among the top 5 highly rated stocks within the group.
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