Vodafone Share Price Surges, Tops FTSE 100 Gainers' Chart

Summary:

The Vodafone share price surges on new stake acquisition by Emirati communications firm, tops FTSE 100 gainers' chart.

The Vodafone share price has surged higher this Monday and is up 4.72% as the stock looks to consolidate Friday’s strong showing in which it gained 2.23%. The mobile phone network operator is seeing strong demand for its shares after the Emirates Telecoms Group became the company’s largest shareholder last week.

This also comes as e& purchased 2.77 billion shares, amounting to a 9.8% stake worth $4.4 billion. The surge in the Vodafone share price leaves the stock at the top of the FTSE 100 gainers’ chart, with Royal Mail coming in at a close second place.

The company is just coming off a stellar fiscal year in which it grew its revenues. As a result, the company expects an adjusted EBITDA of 15.69 – 16.22 billion euros, translating to a 5% growth from the 15.20 billion euro EBITDA recorded for FY2021.

The group also saw its revenues climb from 43.891 billion euros to 45.58 billion euros due to the German division’s 1.1% organic growth and higher service revenues in Africa and Europe. Still, it has decided to put out cautious forward guidance because of the expected impact of inflation and other macroeconomic challenges.

Monday’s surge has allowed the stock to challenge the 126.28 resistance (29 April high). However, it needs to break this barrier for the bulls to gain access to the 129.36 resistance (3 March and 22 April highs). Additional price targets to the north are found at 131.88 (13 April high) and 134.12 (3 February and 1 March highs).

On the other hand, rejection at 126.28 provides a benchmark for the bears to launch a renewed move towards the 122.48 support (26 January and 24 March lows). If this support collapses, the pathway toward 120.26 (6 May low) would be blown open. Additional targets to the south are found at the 115.76 support level (8 December 2021 high and 8 March 2022 low) and at 112.98 (19 November 2021 and 7 January 2022 lows).