LSE:VOD Following a disappointing earnings release last week, the price of VOD gapped down and traded softer for the earnings release trading session. The share picked up some buyers around the 125.00 handle and enjoyed a bounce back up to the 129.00 level in this week's trading.
price hasn't really shown any keenness to close the big earnings gap and appears to be setting up for a drive lower to the 121.00 levels (on a technical basis).
The reluctance of price to put in a retracement on last week's drive lower coupled with Tuesdays (25-05) open drive lower suggests there is potential on another downside move.
Will continue to monitor how buyers come back into the market and see if there is enough selling pressure to send price down to at least 121.00 in the short term
As you can see not all ideas work out but there is always a lesson to take from every failed idea. VOD has rebounded from the earnings sell-off and is grinding its way higher. From an intraday perspective VOD offers good trading opportunities as it has a tendency to trade one way for most of the session. Although there is high volume in this stock circa 60million average daily, the range is small circa 2 points per day. I will continue to watch the price action unfold and share any ideas.