The Vodafone share price gapped higher at today’s open after the telecom giant revealed a return to service growth in its key European market.
Vodafone Group plc (LON: VOD) is trading at 118.90p, higher by 2.86p (+2.47%).
Today’s bounce follows the announcement that both the consumer and business parts of the business enjoyed revenue growth in the fiscal first quarter ending June 2021.
A recovery in handset sales contributed to a 5.7% increase in total revenue, as did a 3.1% bump in service revenues.
“I am pleased to report that we are back to service revenue growth in Europe, as well as Africa. This growth was broad-based within both Consumer and Business segments, with the vast majority of our markets contributing.”
Vodafone Group plc Chief Executive, nick Read.
Coming into this week, the Vodafone share price had declined 18.5% from May’s 138.52p high. Therefore, the numbers have been warmly received.
Furthermore, the (as of the time of writing) 5.6% bounce from Monday’s low may have saved Vodafone from a nasty downside shock.
The daily chart shows that the price tracked back to a gap at 112.90p from November on Monday. Furthermore, by the close, the price recovered this important horizontal support level. The bulls should view this as encouraging.
However, today’s spike has so far fallen short at the 50 and 200-day moving averages, at 122.81p and 121.98p, respectively. Moreover, the Vodafone share price has now reversed more than 2.4% from this morning’s 121.44p high.
A failure to penetrate the 50 and 200 DMA’s could suggest a return to the 112.90p support. And should that fail, the October 106.84p comes into focus.
However, if VOD advances beyond the significant resistance of the moving averages, the outlook improves. The first target then becomes the 100 DMA at 126.48p. And following that, an extension to the May 138.42p high becomes achievable.
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