Following seven successive days of gains, the Vodafone share price has taken a breather, as traders who bought in at the start of the recent rally seek to take some profits.
The recent bullish run was triggered by the company’s recent repurchase program and the emergence of a $16 billion offer for its majority ownership in its Vantage Towers mast business. As per a Reuters report, two investment firms have indicated an interest in buying out Vodafone’s stake in the Vantage Towers. However, no deal has been agreed as insider sources told Reuters that Vodafone is said to prefer a merger with Orange or Deutsche Telekom.
Vodafone completed a share buyback program earlier in the month and plans to carry out another repurchase program from 17-25 March, following the maturity of the second installment of mandatory convertible bonds. The company seeks to use the repurchase to reduce its issued share capital. The Vodafone share price is down 0.45% as of writing, making it likely that the stock will end its 7-day winning streak on Tuesday.
Vodafone Share Price Outlook
The failure of the price to break the 129.36 resistance level opened the door for Tuesday’s pullback. However, this pullback move lacks conviction and could allow the bulls to mount another attack against the 129.36 barrier. If this new assault is successful, 131.88 becomes the new target. Above this level, the former neckline of the completed double top of 10/16 February at 136.12 becomes a new milestone for the bulls.
On the flip side, a bearish outside day candle that breaks down 126.28 is needed to engineer a decline that targets 124.04 initially. Additional downside targets appear at 120.26, with 115.76 (13 January/8 March low) and 112.98 (7 January low) serving as another southbound target.
Vodafone: Daily Chart
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