Trader-Dan

VODACOM - Long Idea RTM

Long
JSE:VOD   VODACOM GROUP LTD
The stock has had a major pullback since hovering near the downtrend 200d moving average and hitting a recent swing high of R110 .

Im looking for a relief bounce here towards R100. A daily close below R90 negates the idea.

Note: This is a reversion to the mean trade (countertrend).


Mean Reversion Concept:
Mean reversion suggests that asset prices will eventually return to their long-term mean or average.
This theory is grounded in the belief that asset prices and historical returns will gravitate toward their average levels over time.
The greater the deviation from this mean, the higher the probability that the asset’s price will move closer to it in the future.

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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
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