There are certain companies that are quiet movers, meaning they show no signs of gaining traction until exploding in price. One of these stocks turned out to be the Vodafone (LON:VOD) idea!
Prices were kept in a narrow range for 75 days before erupting in a stunning breakout at the beginning of December 2021.
Due to factors such as reduced pricing, fewer liquidity, and high volume, stock values surged by more than 45 percent in just a few days following the Breakout.
The Breakout took place in the first week of December, and the Volume skyrocketed at that time. Increasing volume also means that a lot more orders are being put in the stock.
We may expect the Bullish Momentum to continue until and until there is a significant selloff in stock prices. Try to construct positions based on price retracements and pullbacks; it’s also a good idea to avoid buying a stock at its peak price. If prices retest the Breakout Zone at 12.00, it could act as a Support Zone.
The 18.00 level is a potential resistance level; if the market breaks over with substantial positive momentum, we can expect prices to surge to 20.00.
Price Action should be monitored by traders, and decisions should be made based on it.