Yesterday, Vodafone moved off its one year low of 189p to trade as high as 201p after the company confirmed they are in talks with Indian rival, Idea Cellular, to merge its Indian telecoms arm. Indeed, Vodafone has struggled to gain contracts in the region and the prospect of a price war clearly has opened the board to the idea of a merger. The proposed deal would combine almost 400 million customers, coming from the number two and three largest mobile operators. As was alluded to earlier, Vodafone has not performed well relative to its parent index, the FTSE100. On a one year basis, Vodafone is largely unchanged, whilst the FTSE100 is up over 17%. With the deterioration in the technical chart set up, should we break below 190p, I think a move to 160p should become apparent by end of Q2.

Good luck,

Jordan Hiscott, Chief Trader

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