The share continues to trade in a sideways to downward channel, offering opportunities to participate on both the long (buy) and short (sell) side. At currently levels, the candle structure and moving averages suggest a move toward the lower boundary of the channel, and an opportunity to take a buy/log position below 10900c, using a stop-loss of 10650c and take...
Bear flag still in-place and playing out.
Also helping the case for the bears is the down-sloping trend-line which the price-action is so far 'faithful' to.
In the short-medium term, target is still R100.
The telecommunications sector is fraught with pressures (lack of strong revenue growth, regulation, consumer, price cuts). Continual investment into it's networks also sees capex rising albeit cash flows are stable. VOD (115.96) has been under pressure since it's last trading update, declining from a peak of 136 to it's recent lows of 111. The recent price action...
Daily chart shows price trying to break support around R118.
I'm monitoring for, 1st, a close below R118, and 2nd, for that R118 area to act as resistance.
Provisional entry levels, R115/R116; target R100.
Vodacom has consolidated but after reaching the overbought trendline of the downward stride there was a clear change of character indicating weakness. The break of the TR range could indicate more downside to come.
UPDATE. Previous count edited slightly
- I still think we are going up
- No idea what happened this morning. Massive instant drop..
- My mistake might have been thinking we can get an symmetric triangle in the 2nd wave. Apparently that's not possible by EW rules.
- I now count the low of this morning as the end of wave 2.
Vodacom is busy testing the declining trend line today which has been in place since about July of this year. Still looks to resemble a flat bottom triangle, with a closure below R118.00 confirming the pattern. Target from this pattern would then be R95.00. An entry here would be very much pre-emptive but skews the risk / reward highly in your favour. Wait for a...