Vodafone for 15/05/2019

Vodafone #CAC40 #DOW Last time we reviewed this in November last year, we’d given an upper target of 174p. The price achieved 172p before fallback, definitely ‘close enough’, but perhaps also an early sign of coming weakness. We ALWAYS demand target levels are bettered. Unfortunately for Vodafone, we also gave a flip side to the story.

By warning the price dare not fall below 144p, fate was duly tempted and toward the end of January this year the trigger level was broken. This effectively started a timer for a visit down to an initial 123p, perhaps even 109p if broken. By reaching 125p today (Tues 24 May), it has come sufficiently close to our initial drop level to force an update on the big picture potentials.

So, what awaits below 123p?

In the event 123p breaks, further weakness down to an initial 114p makes sense. If (when) broken, bottom calculates at 109p. In almost any circumstances, we’d expect a proper rebound from the 109p level. The caveat; if further reductions are driven by a ready supply of negative news, there’s a massive risk should 109p break as “ultimate bottom” computes at a visually unlikely 50p! We prefer to think of this as absurd, given it matches a price level last seen in 1996. Amazingly, this price level also marks the start of the ruling RED uptrend, a trend now broken with the share achieving lower lows.

We suspect it shall bounce just before 109p, if any real strength is to make itself known.

For the RED uptrend to confirm its validity, Vodafone requires to close a session above the trend. At present, this demands the price exceed 148p. In doing so, we’d regard the share as heading to an initial 165p. Our secondary, if the initial target level exceeded, calculates at 175p.

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

10:32:12PM

BRENT

70.48

               

10:34:07PM

GOLD

1297.6

               

‘cess

10:36:19PM

FTSE

7252.75

               

‘cess

10:38:19PM

FRANCE

5340

5299

5286

5262

5330

5358

5372.5

5415

5288

‘cess

10:40:10PM

GERMANY

11995.93

               

10:45:45PM

US500

2838.97

               

10:54:29PM

DOW

25590

25344

25211.5

25051

25536

25693

25763.5

25841

25490

Success

10:55:54PM

NASDAQ

7412.72

               

‘cess

10:57:41PM

JAPAN

21147

               

 

14/05/2019 FTSE Closed at 7241 points. Change of 1.09%. Total value traded through LSE was: £ 5,933,067,685 a change of 17.45%

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