The Vodafone share price has been in fine form in August, gaining almost 7%. But for VOD to keep it up, it must first face some key levels. After dropping to 112p in July, Vodafone has staged a strong turnaround. However, this has lifted the price into a band of robust resistance, which may prove a stiff test.
Vodafone Group plc (LON: VOD) finished Wednesday at 122.98p, higher by +0.58p (+0.47%). Although it was hardly a show-stopping performance yesterday, it was another step in the right direction. The share price has been inching higher all month, which has shown incredible resilience considering the near-collapse of its Indian partnership, Vodafone Ideal Ltd (NSE: IDEA).
The departure of non-executive Chairman Kumar Mangalam Birla sent the share price tumbling 45% over three days earlier this month. And as a result, the struggling Telcom is pushing for a merger with state-owned BSNL-MTNL. However, the Vodafone share price has continued to march higher, clearing 120.00p and the 50-day moving average at 121.35p. Although for now, the 100 DMA at 123.82p has put the brakes on the rally. Not to mention, if that is cleared, the 200-day comes next.
VOD price Forecast
Turning to the daily chart, we see the share price sits between the 50 and 100-day moving averages. The 50 DMA at 121.35 offers the first level of support. Closely followed by the former resistance at 120.00p. Above the market, the 100 DMA is the first obstacle, followed by the more significant 200 DMA at 125.36p. This has created a robust band of resistance that will certainly prove hard to scale. However, if VOD convincingly clears 125.34p, the June high of 132.32p beckons. But on the flip side, if the Vodafone share price slips below 120.00p, the outlook turns sharply negative and suggests a return to the July low.
Vodafone Share Price Chart (Daily)
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