TECHNICAL ANALYSIS: Vodacom breaks out to the upside with more to come

After moving sideways for the past four months, Vodacom has now broken out to the upside and still has more upside to come as shown on its price chart.

Vodacom – Upside breakout

Recommendation:  BUY
Current Trend: Short-term up. Med-term turning up.
Strategy: Buy at current levels.

Chart Setup:  Vodacom has broken out above line 1 to confirm a large inverse head and shoulders pattern (labelled S-S-H-S-S). In the process, it has broken long-term resistance (line 2) which adds to the bullishness.

Daily chart

Strategy Details: Traders buy at current levels.

Target: Minimum target is R134.60, based on the height of the base projected up. Take partial profits there. Take the remaining profits at R136.40, its January highs.

Stop-loss: A closing price below R121.00 (which is just below line 1). From R131 raise the stop to your entry price (breakeven).

  • Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.15
(+0.43)
ZAR/GBP
20.59
(+0.35)
ZAR/EUR
18.30
(+0.35)
ZAR/AUD
11.64
(+0.48)
ZAR/JPY
0.15
(+0.23)
Gold
1836.39
(+1.33)
Silver
25.31
(+3.85)
Platinum
1085.00
(+2.02)
Brent Crude
54.81
(0.00)
Palladium
2366.01
(+0.08)
All Share
63713.87
(+0.26)
Top 40
58548.17
(+0.17)
Financial 15
11904.46
(-0.10)
Industrial 25
84813.75
(+1.20)
Resource 10
63219.33
(-1.00)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 674 votes
No, I did not.
52% - 1672 votes
My landlord refused
27% - 889 votes
Vote