The outlook for FTSE 100 laggards Vodafone and Unilever
25th January 2022 07:29
by Alistair Strang from Trends and Targets
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Two of the UK's best-known companies bucked the trend on Monday, generating positive returns. Independent analyst Alistair Strang studies the outlook for both shares.
There were a couple of standout performers on Monday 24 January, a day which was pretty foul thanks to Russia/Ukraine speculation. The cause of Vodafone Group's (LSE:VOD)share price movement, however, proved fairly boring, essentially merger & acquisition speculation.
The share price closed the session up by 4.5% at 122.86p and appears ready to attempt further movement. Ongoing travel above just 126p now looks capable of gains to an initial 131p with secondary, if exceeded, a more interesting 140p eventually.
Glancing at the chart, the visuals imply hesitation can be anticipated at our 140p level as this has presented itself as a glass ceiling level since 2020.
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The turmoil in the markets, of course, may intrude but given the behaviour of the futures markets on Monday evening, we think the FTSE should experience some recovery near term, hopefully creating an environment where Vodafone can continue to experience some share price recovery.
Source: Trends and Targets. Past performance is not a guide to future performance
It’s worth noting Vodafone's share price has remained firmly below the pre-pandemic high of 155p. While true excitement must be restrained until such a level is exceeded, doubtless along with world peace and Covid eradication, we’d be inclined to regard closure above the 140p glass ceiling as being potentially game changing for Vodafone.
The strength of reversals since 2018 has created an environment where sharp price recovery to 220p calculates as possible.
Vodafone's share price requires below 108p to force us to re-examine its potentials. Visually we’re fairly optimistic.
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Unilever
As for Unilever (LSE:ULVR), this experienced an incredible Monday, somehow managing to catapult itself above the red uptrend.
As a result, ongoing traffic above 4,055p has the potential of recovery to an initial 4,415p with secondary, if bettered, a more pleasing 4,910p.
Source: Trends and Targets. Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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