Vodafone share price: Technicals point to a jump to 135p as turnaround continues

Vodafone share price has done well in the past few years and is now hovering around its highest level since 2018 as the turnaround strategy pays off. VOD jumped after the management unveiled a plan to launch a TV service as it seeks to challenge its top rivals. It was trading at 125.10p, up by 130% from its lowest level in 2024.

Vodafone turnaround strategy continues

Vodafone, a top telecommunications company, has been carrying out a major turnaround strategy in the past few years, and there are signs that it is paying off. It has sold some of its businesses and bought others. 

Its most significant transactions were selling Vodafone Italy and Vodafone Spain, transactions that helped it raise over €12 billion. Its goal was to leave the less profitable places and focus on its core markets like Germany and UK. 

At the same time, the company executed a major transaction in which it bought Three, a large UK company. This buyout created VodafoneThree, a top competitor to BT Group’s EE. It also bought a large stake in Safaricom, the biggest telecom company in Kenya.

The company has also announced major layoffs as it sought to reduce costs and boosts profitability. 

Now, the company is considering launching a TV service in the UK as it seeks to compete with companies like Sky, BT, and Virgin 02. Its goal is to cross-sell the TV offering to its existing customers as it seeks to more than double its broadband service to over 4.3 million customers by 2034. The head of VodafoneThree said:

“We need a TV offering to sell to our fixed broadband customer base, but also we’ve got a very large mobile customer base and TV is something our customers are asking for.”

The challenge, however, is that moving into the TV industry will be an expensive situation, which explains why BT Group decided to sell part of its television business to Warner Bros Discovery. It is seeking to sell the remaining part of the business.

The most recent results showed that Vodafone’s turnaround strategy was working, with its revenue rising to €8.62 billion in the first fiscal quarter. It jumped from €7.8 billion in the same period last year. This growth was driven by its African and Turkish operations. 

Germany, its biggest market, made €2.7 billion, up by 1.9% from the same period last year. Also, in the UK, its revenue rose to €1.98 billion. 

Vodafone share price technical analysis

VOD stock chart | Source: TradingView

The weekly chart shows that the Vodafone share price has been in a strong bull run in the past few months. It soared from a low of 54.62p in 2024 to a high of 125.20p. It moved to a high of 127p, its highest level since January 2018.

Most recently, the stock jumped above the key resistance level of 119.75p, its highest level on May 11 this year. It has remained above the 50-day and 100-day Exponential Moving Averages (EMA). 

The Relative Strength Index (RSI) has moved above the neutral level of 50 and is pointing upwards. Therefore, the stock will likely continue rising, potentially to the key resistance level at 135.55p, its highest point in January 2018. More gains will be confirmed if it moves above that resistance level.