- Summary:
- Vodafone share price on the verge of breakout as new project targets billions of users around the equatorial region of Africa.
The Vodafone share price is trading higher this Wednesday after the company unveiled plans to collaborate with AST Spacemobile to create a 20-satellite constellation that will transmit 4G and 5G signals to 49 countries in Africa. This project is scheduled to become operational in 2023.
The project, which targets markets around the equator, will enable 4G and 5G capabilities without the need for complex hardware; a huge cost-savings in countries that have infrastructure deficits. The project aims to bridge the coverage gaps that currently exist for billions of mobile users in Africa.
Technical Levels to Watch
The Vodafone share price pattern on the monthly chart reveals that the price is on the verge of breaking out of a massive falling wedge. This breakout is revealed on the daily chart to be a bullish pennant that is still in evolution.
The daily candles of Tuesday and Wednesday form a piercing pattern which is challenging the 131.88 resistance. A break above this level completes the bullish pennant and targets the 135.74 resistance (10 June low, 10 December high). A move towards 142.38 completes the bullish pennant’s price projection.
On the flip side, rejection at current resistance followed by a breakdown of the lower edge of the pennant invalidates this pattern, targeting the 121.84 support. This provides an opportunity for the resumption of the breakout move for the larger rising wedge. However, a breakdown of this level postpones this breakout move and targets 115.16 and 110.12, in that order.
Vodafone Share Price; Daily Chart
