The Vodafone share price is trading higher this Tuesday as the bulls try to seize the initiative they lost a few weeks ago. Back then, the Vodafone share price posted substantial gains over a 4-day cycle that sent the stock from 118p to 132p on solid earnings. However, a correction sent the stock back into consolidation between 124p and 126p before a break last week restored bullish sentiment.
The day’s uptick comes as the company reiterated its intention to remain in the Romanian market as part of a repositioning plan for its European business arm. The CEO of Vodafone in Romania, Achilleas Kanaris, gave this indication in an interview with Ziarun Financiar. The strategy, according to Kanaris, will include cost management via shedding 5% of the workforce and identifying new sources of growth. He expects results to start showing in two years.
Kanaris took over the Romanian operations of Vodafone in 2021, replacing Murielle Lorilloux as the company after a very successful stint as head of Vodafone Albania. His comments appear o have instilled new confidence in investors, who had at one time earlier in the year appeared disgruntled with the company’s inability to take on big-name partnerships.
The breakout from the rectangle pattern on 17 June was followed by a return move to the former resistance at 126.28. This price mark now acts as a support in role reversal. The hammer candle of 22 June that closed above this price mark confirms the rejection of the return.
The accompanying bounce needs more bullish momentum to target the 129.36 barrier (30 March high and 12 April low). A clearance of this level takes the stock toward the previous highs of 11 April and 26 May at 131.88. 134.12 and the previous neckline of the 9 February/17 February double top at 136.12 form the additional northbound targets for the bulls.
On the flip side, a decline below 126.28 and 124.04 is required for the bears to seize control. This decline below the range that constitutes the broken rectangle will clear the pathway toward the 120.26 support (6 May low). Below this level lie additional harvest points for the bears at 115.76 (11 January and 8 March 2022 lows) and 112.98 (7 January 2022 low).
This post was last modified on Jun 23, 2022, 17:55 BST 17:55