Vodafone Idea – Will it Reclaim 10 Levels?Aug 09, 2021
Vodafone Idea had been a disaster for majority of the traders or investors. The stock crashed by more than 40% after the exit of Kumar Mangalam Birla. Now the question is - Will it recover back to its lost glory?
Look at the chart of Vodafone over here
Vodafone Idea Daily chart
The daily chart of Vodafone has formed a morning star candle pattern which is a three-candle bullish reversal pattern and prices closed back above the lower Bollinger Bands. Also, the daily RSI had reached deep oversold levels when the low of this candle pattern formed and so we found a short term bounce back from below 5 levels. But the point is as the overall trend of the stock is negative any pullback is going to be short lived.
Many are waiting for it to reclaim its levels of 10 but we have our doubts. Following is the reasoning for the same -
If we observe the trend of this stock, it can be clearly seen going from top left of the chart to the bottom right. This indicates that over the medium term the overall trend is on the downside. Important resistance is placed near 8.90 levels on the upside. Hence the pullbacks can be short lived and the down trend may resume soon.
In a nutshell, it is best to be out of this stock on pullback towards 8 levels as from the same we can expect a reversal back on the downside towards the level of 5.50 – 5 zone. It is best to invest in stocks where there is potential to outperform and not get stuck in such stocks which is not only financially painful but will consume a lot of emotional energy as well.
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