VOD dominated by bulls lifting the market higher throughout the day
Vodafone Group Plc (VOD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, VOD ended Thursday at 14.79 gaining $1.15 (8.43%), notably outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 14.08, the stock confirmed its breakout through the previous session high after trading up to $0.90 above it intraday.
Daily Candlestick Chart (VOD as at Mar 26, 2020):
Thursday's trading range has been $1.28 (9.34%), that's far above the last trading month's daily average range of $0.83. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VOD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 19th, VOD actually lost -7.11% on the following trading day.
Buyers managed to take out the key technical resistance level at 13.92 (now S1), which is likely to act as support going forward. After spiking up to 14.98 during the day, Vodafone Group found resistance at the 20-day moving average at 14.87.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Vodafone Group. Out of 160 times, VOD closed lower 54.38% 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 10 trading days, showing a win rate of 50.00% with an average market move of -0.29%.