What an Idea!

When you think of a strong name in the Telecom sector, you reach a point in your thought process where elimination helps you arrive at a name. Not selection per se. And that's been the problem with this sector. There isn't strong leadership in this sector. In addition to that, it is often bogged down by several issues that seem never-ending.

BUT, we have a resolution.

Vodafone Idea has finally broken out of its base and looks good for the next leg of the rally.

Take a look at the chart below.

The price broke out above the level of 13.50 and has displayed a follow-through in this breakout with the move that we saw in the week gone by. The indicator is in the bullish regime territory, with a reading close to 75. For reference purposes, the last time we saw the indicator move close to these levels was back in 2013. That was when the price was trading near its all-time highs.

We are bullish on Vodafone Idea above the risk management level of 13.50, with a target close to 18.80. If the price manages to move past the level of 18.80, then 33 would be the next target.

Click on the chart to zoom in.

So Vodafone seems like a good Idea at the moment. There's price action and momentum supporting the move that's unfolding at present.

A good rule of thumb though is to run every idea through your risk management strategy, just to make sure you are selecting the stocks that suit your requirements. It's definitely exciting that Vodafone is on the move, but the Idea shouldn't overwhelm your portfolio.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team