How low can the Vodafone (VOD) share price drop?

Vodafone (LON: VOD) share price has been unloved and unwanted in the past few months. The stock plunged to 71.36p, the lowest level since November 2011. As a result, the shares have plunged by more than 56% from the highest level in 2022. 

Vodafone has faced a perfect storm in the past few years. Growth in its important German market has slowed down. At the same time, some of its international markets are underperforming. Its revenues and profitability in Turkey have dropped due to the collapse of the Turkish lira.

In India, Vodafone Idea almost collapsed until it was rescued. Its market share has continued to drop in the past few years. It is losing share to well-funded companies like Bharti Airtel and Reliance Jio. These companies have gained share across the board but mostly in the premium segment.

Other markets like Kenya and the UK are not doing well either. At the same time, the company carries billions of euros in debt. It has over 33 billion euros in net debt. As we wrote here, the management admitted its underperformance, saying:

“Our performance has not been good enough. To consistently deliver, Vodafone must change. My priorities are customers, simplicity and growth. We will reallocate resources to deliver quality service our customers expect.”

 So, let us look at how low the shares can drop.

Vodafone share price analysis (monthly chart)

VOD chart by TradingView

Conducting a technical analysis can help you predict where a financial asset will move to in the future. Now, turning to the monthly chart, we see that the stock has been in a strong downward trend for a while.

And most recently, the stock has managed to move below the important support level at 72.98P. This was a notable level, which was the lowest swing on February 3rd 2020. By moving below this level, it is a signal that there are still more sellers in the market. 

Vodafone share price has moved to the 61.8% Fibonacci Retracement level. It also remains below all moving averages. Therefore, if the bearish trend continues, the next level to watch will be the next psychological level at 60p. Further declines will see it crash to the 78.6% retracement point at 42.11p.

VOD stock price forecast (weekly chart)

The weekly chart shows that the VOD stock price has been in a bearish trend. It is now sitting at the important support level at 72.73p, the lowest point on March 16th, 2020. Most importantly, the shares have formed an inverted cup and handle (C&H) pattern. 

In price action analysis, this is usually a sign of a bearish signal. Therefore, there is a likelihood that the stock will continue falling as sellers target the key support at 60p.