ARM Holdings (ARM)

The chip designer posted good Q2 results but the share price suffered after Apple’s (AAPL) outlook for the remainder of the year fell short of analysts’ expectations with Apple shares losing 6.6% on 22 July. But ARM does not rely solely on Apple for royalties from chip licences. In fact, market research firm IHS forecast that one quarter of all the world’s PCs will contain an ARM licenced processor in 2015. Could the hit ARM took after Apple’s results actually present a buying opportunity? Or will investors see this as a call for caution, worried about another tech bubble like the one that burst at the turn of the century?

Will shares rebound towards highs 12-month highs 1232p? or will they break down towards support around 800p?

Technical observations

• Support at 970p, just below key 1000p level
• Shares gapped down on 4 Aug – will said gap be filled imminently?

ARM – Bloomberg Broker Consensus:  72% Buy, 14% Hold, 14% Sell;

Consensus target: 122p (+23%)

Vodafone (VOD)

Everyone’s waiting for that announcement – a merger between Vodafone and Liberty Global (LBTYA). Shares in the UK mobile operator engaged in some big moves in May/June when speculation was rife about a tie-up, and are currently holding their own around 235p with markets having all but lost interest for the time being – no news of a merger forthcoming and both companies looking to play down reports of a blossoming friendship. Many feel that Vodafone must find a complimentary partner to be able to compete in the European quad-play market. But perhaps VOD has other ideas.

Will shares continue trending up towards June highs 258p? or will they pull back towards support around 180p?

Technical observations

• Shares are trading above all moving averages (20-, 50-, 100- & 200-day)
• Lacklustre momentum through July

VOD – Bloomberg Broker Consensus:  47% Buy, 41% Hold, 12% Sell;

Consensus target : 242p (–%)