Will Vodafone turn, or will it continue to rise beyond 166p?

• The chart shows the last 4 months’ price action for Vodafone
• The shares have broken above twin resistance at 158p to trade 166p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -31.2% from 2018 highs; +15.6% from 2018 lows; -29.4% year-to-date.
• 23 Nov: Vodafone mulls cutting jobs in Spain, according to Expansion
• 16 Nov: Deutsche Telekom says Germany’s 5G Auction Terms are ‘Unrealistic’
• 14 Nov: Vodafone CEO vows to maintain control of European tower assets
• 13 Nov: Half year results both relieved (dividend spared) and impressed (guidance increased)
• 13 Nov: Accendo Blog – Vodafone: Dial ‘T’ for turnaround?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Vodafone – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price 166p (at time of writing). To do this, you need £2,000.

Let’s assume the Vodafone trend continues upwards to 188p (+13.3%). Your profit would be £1330, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Vodafone breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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