VOD trade ideas
$JSEVOD - Vodacom: No Support In Sight, Target 9070Vodacom may be a good company but it has always been a horrible stock for me.
For a stock of its market, it has always displayed bad technical characteristics in terms of trends, patterns, volume etc.
The trend currently is clearly to the downside and without clear historical support, the first downside target is the March 2020 low of 9070.
Short the rallies.
Vodacom Boring range broken down - Target to R75.27Box formation formed over the last 9 months.
It was a boring range and we were waiting for a breakdown.
Which we now have and the direction chosen is DOWN.
200>21>7 - Bearish
RSI<30 - Bearish
Target R75.27
SMC - Buy Side Liquidity Order block formed above the Box Formation.
This is where Smart money has swept buying from dumb retail traders and have sold into it, causing strong downside.
Vodacom in no mans land but watch out for BIG Order BlocksI mean...
I guess it's ok for range bounded trading.
Buy at the bottom of the range and sell at the top (short) then swing the other way.
But I guess more importantly, the bigger the range the bigger the Order Block is for when the price breaks out.
There are two Order Blocks that Smart Money will sweep.
Buy Side LIquidity - Where it could sweep it all the buying where they will sell and bring the price down.
Sell side liquidity - where it could seep it all the sells where they will buy to bring the price up.
UNtil we have a confirmed Break above SSL or BSL - it's going range bounded until then.
$JSEVOD - Vodacom: Etisalat To Investment in Vodacom?I recently covered Vodacom on the 4th of December giving a bullish continuation channel setup.
Breakouts from such channels tend to be more reliable when they occur on high volume.
High volumes tend to have more significant meaning when they come from institutions based on changes in fundamentals or there is new news flow.
Vodacom certainly ticks all these boxes.
On the 7th of December 2022, at 13:42 CAT, Bloomberg ran an article that Emirates Emirates Telecommunications Group is exploring a potential investment in Vodafone Plc’s African business as it seeks to boost its international footprint.
The Vodacom share price has since spiked and closed above the resistance trendline.
A lot can still happen regarding this potential investment and more volatility can be expected as lots of speculation will also take place.
$JSEVOD - Vodacom: Bullish Continuation Channel SetupVodacom stock is not the most exciting share to trade as it is lethargic and does not produce the best technical patterns or wave counts.
A 80% price appreciation from the March 2020 lows has been followed by a currently 29% decline.
Though this decline can be classified as a bear market, there are early signs of a potential turn around.
The price action has been contained in a bull flag pattern and there is convergence between the MACD and price action indicating that selling momentum is waning.
A breakout from the upper resistance trendline, preferably on increased volume, and a break above R132,49 will provide additional signals that the bear is potentially over.
Relative Sector Analysis: Coal Miners & TelcosRelative performance and relative strength is meant to assist traders and investors in understanding the appropriate weighting/positioning versus the overall market. Combined with additional factors, a trader is able to determine whether they should hold an equal weight, underweight and overweight position versus the index. The data below represents the relative ratio charts (equally weighted) of the major sectors of the JSE versus the Top 40.
Each chart is presented with the following annotations:
1. Price with a 2 standard deviation linear regression channel over 200 days.
2. Adjacent to the price chart (right hand side), is the Relative Strength Index for the following periods: 3D, 1W, 21D (1 Month) and 63D (1 Quarter)
VODACOM - Long IDEAVodacom has reached a key level of interest R118-108 where i'm looking to take a long position.
It also coincides with the 200wma and yearly S1 pivot. Oscillators in oversold territory.
We could possibly see a bounce first up to R128 then R144 if the zone holds.
A daily close below R108 would be viewed as bearish with next support being around R100