Will Vodafone break support, or will it rise back to 140p?

• Falling range since Jan, bounced off floor
• Now trades 125p (at time of writing)
• Will the pattern repeat itself, rising back to the ceiling at 140p ceiling?
• Shares -21% from 2019 highs; +2.6% from 2019 lows; -18% year-to-date.
• 24 May: TPG seeks Court approval for merger with Vodafone Hutchison Australia
• 15 May: Vodafone still worth a call despite dividend cut says Barclays
• 14 May: Vodafone on track for revenue inflection in Q2 says Credit Suisse
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Vodafone – An Example

Let’s say you like the range, you think it’s heading back towards 140p again. You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price of 125p. To do this, you need £2,000.

Let’s assume Vodafone rises to 140p (+12%). Your profit would be £1200, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Vodafone falls 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.