The Vodafone price is down by less than a percentage point in today’s trading session. The drop also marks the eighth consecutive session that we have seen Vodafone dropping in the markets. The drop comes amidst reports that the company’s Ireland operations have been ordered to pay more than €2m to its 74,000 customers.
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The refund was in response to the company’s continuing billing of these customers past their contract cancellation. The reports indicated that, upon realization by Vodafone that some of their clients had been charged past their contract cancellation, they failed to refund the money. Instead, the company opted to give it back as a credit on the inactive and already cancelled accounts.
This meant that these customers did not receive these funds. The only customers that were refunded were those who asked, and according to reports, the requests were not many. The drop may also have been triggered by the company’s decision to sell its Hungarian business to state-backed groups. The deal will see Vodafone sell 100 per cent of its assets in Hungary to o 4iG and Corvinus Zrt, a Hungarian state holding company.
Vodafone Share Price Analysis
Looking at the past few trading sessions, there is a high likelihood that the current aggressive push to the downside is being triggered by more factors than the one listed above. For instance, the latest UK inflation rate was over 10 per cent, which may lead to most investors being cautious with their money.
Whichever the case, I expect the bearish trend to continue for the next few trading sessions. There is a high likelihood that we may see Vodafone’s share price falling below the 110p price level. It is also not out of the question that, by mid-September, Vodafone’s share price may be trading below the 106 demand level.
My aggressive bearish analysis will only be invalidated by prices trading above the 120 price level. At that point, the bullish push will have been confirmed.