Will Vodafone continue falling, or will it rise again back to April highs of 147p?

• Vodafone fallen 16% from April highs.
• Now trades 124p (at time of writing).
• 14 May: Vodafone Cuts Dividend to Reduce Debt Load Ahead of 5G Launch
• Shares -21.5% from 2019 highs; +0.6% from 2019 lows; -18.5% 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 147p. You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price of 124p. To do this, you need £2,000.

Let’s assume Vodafone  recovers back to 147p last week’s highs (+18.5%). Your profit would be £1850, 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 falls 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.