Vodafone Share Price Under Pressure Despite New Investment

Following two days of advance, the Vodafone share price’s inability to breach the 110.12 resistance preserves the integrity of that barrier and keeps the price action range-bound. The price rejection at the 110.12 resistance triggered the 0.75% slump on the day. 

InvestingCube's S&R Levels

FTSE100

FTSE100 (6963)

Not in Sell Zone

STOP

SELL

TP1

6901

TP2

6850

The Vodafone share price had seen two days of limited upside action after the announcement of French billionaire Xavier Niel’s acquisition of a 2.5% stake in the company. The purchase was made via his Atlast Investissement company, according to a news report from Reuters covering the situation. 

Industry watchers believe the entry of the French billionaire into the shareholder’s fold may add more pressure to the company’s management, which other investors had accused of not delivering on many of its earlier expansion promises. Niel is a notable activist investor, having had a history of exerting investor-led changes in company direction. 

The Vodafone share price has not had a good run in recent months. The stock has come under tremendous pressure from the underperformance of the currencies in its countries of operation. The Pound is at 37-year lows versus the US Dollar, and the Lira has plunged 70% against the greenback in 2022.

Vodafone Share Price Forecast

The price action remains in a range bordered by the 110.12 resistance (ceiling) and the 106.82 support (floor). The downside continuation of price action follows a breakdown of 106.82 (3 November 2021 low). This will give the bears a lot of room to push to attain the 102.80 support level, where the previous lows of 21 September 2020 and 3 November 2020 reside.

If the bulls fail to defend this support level, the bears will make 101.06 (2 October/28 October 2020 lows) and an additional harvest point. On the other hand, a break of the 110.12 resistance level triggers the price upswing. This clears the path toward the 112.98 barrier (10 January low and 15 September high).

A push above this barrier makes 115.76 available, being the site of the previous lows of 8 March and 24 August, acting in role reversal. A further advance brings in 120.26 (11 August low) as a harvest point for the bulls, followed by 124.04 (17 August high) and 126.28. 

Vodafone: Daily Chart