Will Vodafone break higher, or will it fall back to 143p lows again?

• The Vodafone falling range exists since early 2018
• Bounced back from falling highs trendline 3 times, most recently this week.
• Now trading 162p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -15.4% from 2018 highs; +13.3% from 2018 lows; -13.6% year-to-date
• 16 Nov: Deutsche Telekom says Germany’s 5G auction terms ‘Unrealistic’
• Markets concerned about slow growth, debt-pile and expensive M&A to chase growth
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Vodafone – An Example

Let’s say you like the range, you think it’s heading back towards 143p again. You decide to sell exposure to £10,000 worth of Vodafone using a CFD, at the current price of 1622p. To do this, you need £2,000.

Let’s assume Vodafone falls back to 143p (-11.7%). Your profit would be £1170, 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 rises 5% and hits your stop-loss. Your loss would be £500.

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