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While the chart clearly highlights an eventual target at 289p, I also identified an intermediate target in a tight band of resistance defined as 232-235p as a level at which to book trading profits. With the shares recording a 234.25p intraday high on 11 November, my trading target of 234p has now been fulfilled. As a result, my trading recommendation has reverted to neutral.
While longer-term investors should consider this intermediate resistance at 232-235p as nothing more than a nuisance, traders need devise a plan in which long positions may be re-established. In my view, the trigger for this will be a break above 235p, where the price will enter a new and higher trading band with parameters defined as 232-289p. We should note that there is no resistance of any substance between these two parameters, and any break above 235p will probably see the share price jump quite quickly. A takeover of Vodafone by AT&T, about which the press has speculated, would obviously provide such a catalyst.
A period of sideways churn would now be a very positive development, setting the shares up for a breakout above 235p sometime in the new year. For CFD traders and spread bettors, you can activate a trigger limit on your account to buy on a break above 235p, enabling you to participate in such an outcome.
Recommendation: neutral short-term trading outlook. Longer-term investors should stay the course, with an eventual target of 289p.