Will Vodafone continue falling, or will it rise again back to 150.7p last week’s highs?

• Vodafone fallen close to 10% from last week’s highs after results.
• Rebounding today +2% from the lows.
• Now trades 138p (at time of writing).
• Shares -13% from 2019 highs; +2.2% from 2019 lows; -9.2% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Vodafone – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 150.7p. You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price of 138p. To do this, you need £2,000.

Let’s assume Vodafone  recovers back to 150.7p last week’s highs (+9.2%). Your profit would be £920, 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 falls 4% and hits your stop-loss. Your loss would be £400.

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