VOD breaks below Thursday's low
Vodafone Group Plc (VOD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VOD ended the month -4.64% lower at 15.20 after tanking $0.46 (-2.94%) today on high volume, significantly underperforming the Nasdaq 100 (1.78%). Today's close at 15.20 marks the lowest recorded closing price since May 15th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 15.35, the market confirmed its breakout through the previous session low after trading up to $0.25 below it intraday.
Daily Candlestick Chart (VOD as at Jul 31, 2020):
Friday's trading range has been $0.61 (3.89%), that's far above the last trading month's daily average range of $0.30. Weekly volatility is also higher, being slightly above 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 Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on July 13th, VOD gained 2.98% on the following trading day.
Prices broke below the key technical support level at 15.44 (now R1), which is likely to act as resistance going forward. After having been unable to move above 15.71 in the prior session, Vodafone Group ran into sellers again around the same price level today, missing to move higher than 15.71.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Vodafone Group. Out of 339 times, VOD closed higher 52.51% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.87% with an average market move of 0.27%.