Vodacom Group Ltd: Could Be Set To Recover

16 November 2017 | Moxima Gama
 


BOTTOM LINE: VOD has bounced on the lower slope of its long-term bull channel after recently correcting.

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Trade VOD From 0.3%

Possible scenario:

Currently encountering resistance at 15,770cps, VOD could range between that level and the lower slope of its channel. Because the RSI is oversold, we expect VOD to regain upside, and a move above 15,770cps could see VOD recover through 16,265cps - so in that case, go long.

However, the 3-week RSI must simultaneously return to bullish territory - trade through the red bold trendline - to substantiate the upside on the price chart. Thereafter, VOD should retest either the 18,700cps level or the upper slope of its channel.

Alternative scenario:

VOD could breach the lower slope on a reversal below 15,770cps, and a negative breakout would be confirmed through 13,850cps. In this case, go short.

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Moxima

Moxima Gama
Technical Analyst, Sharenet

Moxima has a B.Comm Finance from the University of South Africa and is a certified Chartered Market Technician Level 2, currently completing Level 3. She has been a technical analyst for 10 years, working for BJM, Noah Financial Innovation and for Standard Bank as part of the Research Team in the Treasury Division of CIB. She now runs her own business, The Money Hub, and consults for Sharenet. Moxima has been rated as one of the top 5 technical analysts in South Africa and outperformed the market during the recent recession. She regularly makes an appearance as a guest on CNBC Africa and writes often for Finweek and Sharenet’s Views.

Read an interview with Moxima, or discover Moxima’s trading insights via Sharenet’s Technical Analysis Newsletter.


Disclaimer:
The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs. The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Sharenet.

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