Is There More Downside Potential For This Telecom Giant?LSE:VOD
Following a disappointing earnings release last week, the price of VOD gapped down and traded softer for the earnings release trading session. The share picked up some buyers around the 125.00 handle and enjoyed a bounce back up to the 129.00 level in this week's trading.
price hasn't really shown any keenness to close the big earnings gap and appears to be setting up for a drive lower to the 121.00 levels (on a technical basis).
The reluctance of price to put in a retracement on last week's drive lower coupled with Tuesdays (25-05) open drive lower suggests there is potential on another downside move.
Will continue to monitor how buyers come back into the market and see if there is enough selling pressure to send price down to at least 121.00 in the short term
Vodafone
Vodafone Idea getting ready for a ride. Don't MissThe most under rated stock is now on its dream run, get ready for the big rally. As per my analysis Its now trading inside the triangle pattern so a breakout to the upside can give target of TP1 - 14.45 TP2 - 18 and TP3 - 23 keep stoploss under 9 as it is the bottom of the flag pattern. Good luck and enjoy the ride any bad news for the stock can ruin the rally but it's less expected keep stoploss and ride.
IDEA is looking good with strong consolidation prior to 13 & 15Idea's chart is looking very simple & clean for further up move.
Why I choose this trade:
Technical Analysis
Idea shot up from 6 to 12.55 within few trading days.
It cooled down to the 9 after big move and found very good support at 8.50 - 9
Since last few trading session it is ranging between 9 to 11 but not breaking 8.50 except 1 trading session.
Market Analysis
Idea told to Supreme Court that they are no in position to pay dues upfront.
Government is not in position to bail out at all due to Corona Crisis.
Declaring as bankrupt is the worst case scenario because many banks having exposure in Idea.
Most important taking out Idea from the Telecom leads to fear of Monopoly.
I strongly believe that shutting down operation is not solution here because the user base is still very large & it will affect on many people.
So best option could be paying dues in installment which Idea is asking.
VODAFONE UK BUYThe range at the top then turned in to a down trend. The price then went in to a short-term correction before it then dropped rapidly. However, it then met resistance at 90 which was the continuation of the previous downtrend and key support at a level in the past. This has now formed a new short-term uptrend which i believe is a sign of a reversal of the long-term down trend in to an uptrend.
This is more of a longer-term strategy so sell the investment when you like, I would probably sell around 245.
Vodacom - Bearish Engulfing candle pattern formingThe market doesn't seem to have reacted well to the restructuring of JSE:VOD today and has formed a massive bearish engulfing candle with today's move. Along with this, it has broken the upward trend it has been following since mid March. If it trades lower tomorrow, I might consider a short position.
VOD : close to breakoutVodafone has kept if dividend unch giving it (for now) a high single digit div yield which is pretty decent in a zero rate world. The range 125-135p is critical for a breakout. Don't expect stellar returns given utility status and African exposure but a possible re-rating of the stock given post covid-19 realities is possible - one to watch.