Probabilities of further upside on JSE's Vodacom share price?
JSEVOD fell off a cliff from its all-time high of R186.99 in August 2017 and left a gap between R177.10 and R168.81 while going on a downward trajectory, reaching lows of R90.70 around March 2020. We then saw a bounce rally taking us to R163.48 before sellers stepped in around April 2022 to have price sniff R85.44 by April 2024.
We have seen a positive recovery since then, with price painting what seems to be an Inverse Head & Shoulders pattern. The bullish crossover of the 50 and 200 Day EMA has also already occurred with the Daily RSI firmly in bullish territory. Since August 2024 a bullish flag seems to also be developing as the right shoulder of the H&S pattern, giving added confluence to probabilities of further upside.
Seeing that price is still only hanging around the 50 Day EMA, there is a slight possibility that sellers might have their last and final show of strength from a zone around R110.00 ~ R111.00 to pull price back to R99.20 where we expect conservative buyers to pick the stock up for a rally to R138.86 and beyond. Earnings data coming out on 11 November 2024 might, if positive, act as a catalyst for buys up to a resistance zone around R116.22 which will need to be overcome and positively retested for aggressive buyers to step in.
Recommended BUY Position:
R99.20 (Conservative) with a Stop Loss of R96.00
R117.20 (Aggressive after testing R116.22) With a Stop Loss of R113.30
Take Profit 1: R138.86
Take Profit 2: R156.30
Take Profit 3: R188.80
Take Profit 4: R430.00 (Much later in life)
We have seen a positive recovery since then, with price painting what seems to be an Inverse Head & Shoulders pattern. The bullish crossover of the 50 and 200 Day EMA has also already occurred with the Daily RSI firmly in bullish territory. Since August 2024 a bullish flag seems to also be developing as the right shoulder of the H&S pattern, giving added confluence to probabilities of further upside.
Seeing that price is still only hanging around the 50 Day EMA, there is a slight possibility that sellers might have their last and final show of strength from a zone around R110.00 ~ R111.00 to pull price back to R99.20 where we expect conservative buyers to pick the stock up for a rally to R138.86 and beyond. Earnings data coming out on 11 November 2024 might, if positive, act as a catalyst for buys up to a resistance zone around R116.22 which will need to be overcome and positively retested for aggressive buyers to step in.
Recommended BUY Position:
R99.20 (Conservative) with a Stop Loss of R96.00
R117.20 (Aggressive after testing R116.22) With a Stop Loss of R113.30
Take Profit 1: R138.86
Take Profit 2: R156.30
Take Profit 3: R188.80
Take Profit 4: R430.00 (Much later in life)
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