The outlook for FTSE 100 laggards Vodafone and Unilever
25th January 2022 07:29
by Alistair Strang from Trends and Targets
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.
- Friends & Family: ii customers can give up to 5 people a free subscription to ii, for just £5 a month extra. Learn more
- Why reading charts can help you become a better investor
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.
- Chart of the week: tech stocks and what to make of the crash
- Our outlook for 2022: key topics and investment ideas for the year ahead
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.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.Â
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.