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TME — Oversold Bullish Reversal

Status: Invalidated

Scanner score: 20.0/100

Why this was flagged

TME was identified as a bullish technical setup based on the Oversold Bullish Reversal pattern. The scanner found a score of 20.0/100 using trend alignment, momentum, price action, volume, and risk-management rules. Monitor update: Latest stored daily low of 7.7700 reached or fell below stop loss 7.8151.

Trade framework

Current price$7.89
Entry zone$7.89 – $7.94
Stop-loss / invalidation$7.82
Target 1$8.04
Target 2$8.11
Reward/risk2.00:1
Suggested holding windowAbout 2–8 trading days; reversal setups should work relatively quickly.
FoundSep 11, 2026 12:49 am
Potential expirationSep 21, 2026 6:05 pm
Entry plan: Consider a limit order only within the displayed entry zone. If price does not enter that range, skip the trade rather than chasing it.

Position-sizing example

Reference entry$7.92
Planned risk per share$0.10
Example: $100 planned risk977 shares
Example: $250 planned risk2,442 shares

These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.

Exit plan

  1. Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
  2. Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
  3. Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
  4. Time exit: Reassess or close a trade that fails to progress within the suggested holding window.
See on TradingViewSee on Yahoo FinanceResearch on Morningstar

Technical chart

Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.

$6.98$10.00$13.02$16.03$19.05Target 2 $8.11Target 1 $8.04Entry high $7.94Entry low $7.89Stop $7.82May 5, 2026Sep 11, 2026
CloseSMA 20EMA 20SMA 50SMA 200Entry zoneStop-lossTargets

$1,000 educational outcome examples

Example reference entry$7.92
Example fractional shares126.30
If Target 1 is reached$1,015.45 value (+1.5%)
If Target 2 is reached$1,024.91 value (+2.5%)
If the stop-loss is reached$987.07 value (-1.3%)

These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.

Easy explanation for new investors

Why the scanner noticed this stock
Tencent Music Entertainment Group, which goes by the ticker symbol TME, caught the scanner’s eye because of its price movement. The computer program looks for stocks that might be undervalued or ready to turn around. This specific pattern is called an "Oversold Bullish Reversal." It suggests the stock price dropped a lot recently and might start climbing back up. The scanner gave this idea a low score of 20 out of 100, meaning it found some interesting signals but not enough to be confident. A key signal was the RSI, which is a meter that shows how hard a stock is moving. When this meter hits 20, it is in "oversold" territory, like a spring that is stretched far and may snap back.

What the price plan means
The plan suggested watching for a price between 7.89 and 7.94 dollars. If the price stayed in this range, the plan hoped it could reach two higher goals: 8.04 dollars and 8.11 dollars. The plan also had a safety rule. If the price fell below 7.82 dollars, the idea was considered broken, and traders should stop looking at it. The plan aimed for a reward that was twice the risk. This means the potential gain was planned to be larger than the potential loss if the idea did not work out.

What could make the idea fail
This specific plan is now marked as "invalidated." This means the safety rule was broken. The stock price recently dropped to 7.77 dollars. This is lower than the 7.82 dollar safety line. Because this happened, the scanner says the original idea no longer works. You should not try to follow this old plan because the conditions that made it interesting have changed. The price moving lower shows the "reversal" did not happen as hoped.

Important reminder
Stock screening tools use math and past data to find patterns. They do not know the future. A low score like 20 does not mean a stock is bad forever, but it does mean this specific trading setup failed its test. Always check current prices and news before making decisions. Technical tools are just maps, not guarantees of what will happen next.

Recent news context

This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.

Overall context: Caution (High confidence)

Tencent Music Entertainment Group (TME) recently reached a 52-week low, with analyst sentiment centered on a 'Hold' consensus despite a significantly higher average price target of $17.21. The company recently priced a $1 billion senior unsecured bond offering to refinance offshore debt and fund share repurchases. Strategically, TME launched a joint venture with SM Entertainment to develop music artists in China. Recent earnings reported quarterly revenues of $1.31 billion and $0.25 per share in earnings. While some institutional investors increased their holdings, broader analyst actions have included downgrades to 'Hold' and target reductions. The combination of recent price weakness and mixed analyst actions creates a scenario of meaningful uncertainty for investors.

Potentially supportive context

  • TME priced a $1 billion bond offering to refinance debt and fund share repurchases, while holding RMB 44.2 billion in net cash.
  • A strategic joint venture was established with SM Entertainment in Beijing to develop music artists in the Greater China market.
  • Several institutional investors, including Nykredit A/S and Pale Fire Capital, recently increased their ownership stakes in TME.

Risks and caution items

  • The stock recently reached a new 52-week low, with recent market performance showing downward momentum.
  • Analyst sentiment remains mixed, with a consensus rating of 'Hold' and recent downgrades to 'Hold' alongside target reductions.
  • The $1 billion bond offering introduces new interest obligations with coupon rates of 5.050% and 5.650% for maturing tranches in 2031 and 2036.

Latest reviewed article: Sep 9, 2026 2:51 pm

Recent related articles

Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.

Scanner confirmations

  • RSI is near oversold territory with bullish candle confirmation.
Important: This is an automated educational screening result, not a buy recommendation. Confirm price, liquidity, earnings dates, news, and your own risk before entering any trade.
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