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 4 times, most recently yesterday.
• Also broken below recent support
• Now trading 158p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -33.0% from 2018 highs; +12.5% from 2018 lows; -32.7% year-to-date
• 14 Dec: Ofcom reviewing UK broadband prices, proposes companies should tell customers about best deals deals.
• 11 Dec: EU opens in-depth probe into Vodafone’s scquisition of Liberty Global assets
• 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 158p. To do this, you need £2,000.

Let’s assume Vodafone falls back to 143p (-9.5%). Your profit would be £950, 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.