VOD breaks back below 50-day moving average
Vodafone Group Plc (VOD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VOD finished the week -1.17% lower at 19.46 after losing $0.21 (-1.07%) today on low volume, notably underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (VOD as at Feb 14, 2020):
Friday's trading range has been $0.15 (0.77%), that's below the last trading month's daily average range of $0.23. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VOD.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on September 30, 2019, VOD lost -2.56% on the following trading day.
The market closed back below the 50-day moving average at 19.58.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 19.27 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Its common bearish interpretation has been confirmed for Vodafone Group. Out of 54 times, VOD closed lower 53.70% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 55.56% with an average market move of -0.05%.