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Home / Momentum / Vodafone

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Vodafone

Is this trend a good trading opportunity?

Will Vodafone turn, or will it continue falling to 8-year lows of 124p?

  • The chart shows the Vodafone price action in 2018.
  • Shares in a 9-month downtrend; now at 151p.
  • Company is burdened by sluggish growth prospects.
  • High levels of debt (€40bn) incurred to finance large M&A deals also weighs on shares.
  • Recent CEO change represents a potential risk.
  • Shares now trading at 8-year lows; -35.5% from 2018 highs; -10.5% year-to-date
  • Shares fell 6.6% in the past weekWill this negative momentum continue?

Click to enlarge

Trading Vodafone – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of Vodafone using a CFD, at the current price of 151p. To do this, you need £2,000.

Let’s assume the Vodafone trend continues to May 2010 low of 124p (-17.8%). Your profit would be £1,780, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Vodafone shares rise 10% and hit your stop-loss. Your loss would be £1,000.

This is provided for information purposes only. It should not be taken as a recommendation.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Prepared by Michael van Dulken, Head of Research
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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