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.
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.
JSE:VOD
Broke higher from long sideways consolation. Yesterday pulled back and so far looks as false break.
Short if 13000 is broken. Target probably back to the bottom of the channel around 11800.
Expecting a trend reversal on a failed break above the key resistance R 132.00 / R 134.00 levels.
Failure will result in a downward trend to possibly test R 117.50 / R 118.50
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...
Vodacom is a leading African communications company providing a wide range of communication services, including mobile voice, messaging, data, financial and converged services to over 103 million (including Safaricom) customers. From Vodacom's roots in South Africa, they have grown their mobile network business to include operations in Tanzania, the DRC,...
