VOD unable to break through key resistance level
Vodafone Group Plc (VOD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
VOD ended Wednesday at 14.20 gaining $0.14 (1.0%), significantly outperforming the Nasdaq 100 (-1.67%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VOD as at Sep 16, 2020):
Wednesday's trading range has been $0.26 (1.83%), that's slightly above the last trading month's daily average range of $0.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VOD. Prices continued to consolidate within a tight trading range between 13.97 and 14.42 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on August 20th, VOD actually lost -1.83% on the following trading day.
Unable to break through the key technical resistance level at 14.33 (R1), Vodafone Group closed below it after spiking up to 14.40 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the nearby swing low at 14.00 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Vodafone Group. Out of 340 times, VOD closed lower 55.59% 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 52.06% with an average market move of -0.38%.