Will Vodafone turn, or will it continue to rise beyond 162p?

• The chart shows the last 2.5 months’ price action for Vodafone
• The shares have broken above a resistance level at 155p trade 160p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -35.1% from 2018 highs; +9.1% from 2018 lows; +31.7% year-to-date.
• 13 Nov: Half year results both relieved (dividend spared) and impressed (guidance increased)
• Vodafone: Dial ‘T’ for turnaround?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Vodafone – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price 160p (at time of writing). To do this, you need £2,000.

Let’s assume the Vodafone trend continues upwards to 172p (+7.5%). Your profit would be £750, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Vodafone breaks lower, falling 4% and it hits your stop-loss. Your loss would be £400.

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