Vodafone - trending or not ??

[kkarank]

Junta,

I am trying to figure out if the vodaphone stock is trending or not !

i take the monthly chart for VOD and see that the ADX is constantly around 20 ??? i saw one of the videos of Linda Barche and also my studies seem to suggest that an ADX that low does not indicate a trending stock ? however the VOD stock has constantly risen from 112 to 126 in the last month ??

ideas please !

Thanks
KK

 

[andycan]

ADX has its limitations you have to take into consideration that it had a stock split so ADX is measuring a drop which was fabricated rather than dropping due to selling pressure. i dont trade shares but thats definitely trending, and has more up to go from what i see

 

[lukaah]

vodaphone looks better

definately......banks like the new management, directorships etc( even Sarin) structures have direction and the management seems willing and able to deal with the fat twisted elements of an over inflated market that will eventually have 2-3 independent players.

hope this helps.

QUOTE=kkarank]Junta,

I am trying to figure out if the vodaphone stock is trending or not !

i take the monthly chart for VOD and see that the ADX is constantly around 20 ??? i saw one of the videos of Linda Barche and also my studies seem to suggest that an ADX that low does not indicate a trending stock ? however the VOD stock has constantly risen from 112 to 126 in the last month ??

ideas please !

Thanks
KK[/QUOTE]

 

[Hook Shot]

Great pick kkarank - this one got away from me ........ as it was near 2yr lows, good divi and wasn't gonna go bust. Now, I just have to wait for test of 120 to get on board. Can't comment on indicators I'm just a simpleton.

HS

 

[kkarank]

Great pick kkarank - this one got away from me ........ as it was near 2yr lows, good divi and wasn't gonna go bust. Now, I just have to wait for test of 120 to get on board. Can't comment on indicators I'm just a simpleton.

HS

sorry you mean you want to test support at 120 ? i dont know i might be acting over scientific here but i tested the graph on Fibonacci scale and it looks like barring a major announcement the new support will be around 121-122 ..

 

[kkarank]

ADX has its limitations you have to take into consideration that it had a stock split so ADX is measuring a drop which was fabricated rather than dropping due to selling pressure. .....

hi andy ,what is a stock split ?

cheers
kk

 

[damianoakley]

Hi kk,

A quick glance at VOD (without any indicators) shows an obvious 6 week uptrend, but if you are thinking of going long, I would say be cautious - this stock has got a lot of overhead resistance to get through.


Thanks


Damian

 

[kkarank]

A quick glance at VOD (without any indicators) shows an obvious 6 week uptrend, but if you are thinking of going long, I would say be cautious - this stock has got a lot of overhead resistance to get through.

Damian

hi again damian !

yes i noticed that it has tried to break through 126 around 7 times in the last week but no good...

it might well plateau and even correct in the next week or so but i would like to see where it comes to in the next 15 days ...you see had this been a live trade i would probably wait a little longer and buy on a bounceback above 126 - but i am still doing paper trading and testing out theory of a few indicators ....in this case the Fibonacci numbers and the monetum indicator

wish me luck

 

[damianoakley]

Good luck in your testing of indicators.

Remember that there is no better indicator than the price of the stock itself !


Good Luck

Damian

 

[andycan]

hi andy ,what is a stock split ?

cheers
kk

a stock split is when they increase the number of shares available, to do this they increase the number of shares but reduce the value of each share. naturally the company can only be worth what it is valued at otherwise companies could just sell unlimited amount of shares and create a false value. to compensate those that own shares they are offered x number of shares to make up the difference. i dont trade shares but i know vodaphone did this back in the summer

 

[Hook Shot]

sorry you mean you want to test support at 120 ? i dont know i might be acting over scientific here but i tested the graph on Fibonacci scale and it looks like barring a major announcement the new support will be around 121-122 ..

Kkarank - yep I'm not too specific about the EXACT price because Vod is low price ie almost penny stock .... it can easily move 1p in a heart beat so my rough guide is - in the region of - 120. But my main point is as others have said I believe it's going up and we are early in the wave - which is why I want and need a pullback...

Fundamentally, telcos are back in vogue............ they are very simple to understand .... and institutions are leaning on this company to stop frittering away their mega cashflow on buying companies and give shareholders the money instead. Vod has given in to pressure. So we have big buybacks, special dividends....... larger payout ratio (more of earnings will be given to shareholders)..what is there not to like ?

I see overhead resistance but even if it stays 110/130ish - that's almost 20% per swing plus secure 5%+ divis.... Looks like a dream to me.

I know too much info ............I'm working on it....

Hook Shot
.......