Since the dot com bubble sell off, every time the monthly StochRSI has gone below 2, Vodafone has made at least a 30% gain over 12 months.
The blue diagonal shows my current trend bias and I think Vodafone is undervalued for the dividend value it gives and the growth opportunities it can command given its economies of scale.
Invalidated for me at 146. A break ...
It's difficult to know, at any given time, what is happening with Vodafone (VOD). Mergers, acquisitions, sales, purchases, entering new markets, leaving old markets, profits, losses, etc. Which is why I'm going to focus mainly on the technical side of things.
Since 2013 VOD has been in a range between a low of around 190 and a high of around 255. Thus far this ...
Entered my first position Long on Vodafone at 194.15 +1,078 shares.
Flip Zone 188.74 - Support Zone 177.62 is a good start to get Long aiming for 234+
I'm getting in now to build Long ahead of the Ex-Div date 7th Jun '18 paying 3rd Aug '18
VOD might break the triangle pattern formed since 2014.
It's now below its 50 month moving average.
Stochastic also trending lower.
BUT - 200p resistance was established in 2007 and 2001, and has to break that to head lower.
After today's results, will VOD break away from the Triangle pattern which has been forming since 2014?
On this monthly chart, it's still in an uptrend, so the answer is probably yes.
NOTE: RSI is not supportive though and shows divergence.
I like the current dynamic of Vodafone share and the strong upwards momentum they currently have.
This is still an evolving chart so perhaps a trailing stop would be more appropriate here to avoid being hit large on any pull backs, which I would expect to be spiky like the rebound from the 190 level.
Multidiagonals currently seem to target around the 232 level.
Multiple failures around 234-235 levels followed by a sharp drop today suggests the prices could be heading lower to the symmetrical triangle floor seen around 226 levels.
Daily MACD and RSI have turned flat, while the volumes have stayed healthy. Moreover, break in volumes above 20-day average today would add credence to possibility of a drop to 226 levels.