VOD rises to highest close since March 10th
Vodafone Group Plc (VOD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, VOD ended the week 8.01% higher at 15.91 after gaining $0.18 (1.14%) today on low volume, outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 15.91 marks the highest recorded closing price since March 10th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (VOD as at May 22, 2020):
Friday's trading range has been $0.19 (1.2%), that's below the last trading month's daily average range of $0.34. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VOD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 16.01 (R1). After having been unable to move lower than 15.72 in the prior session, the stock found buyers again around the same price level today at 15.75. The last time this happened on Wednesday, VOD gained 0.77% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 16.01 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Vodafone Group. Out of 76 times, VOD closed lower 55.26% 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 -0.75%.