The upward rally of Vodafone Group Plc (ADR) (NASDAQ:VOD) suddenly ended today, after binary traders heard the recent news. A Ghanaian court is investigating a shady deal from 2008 in which Vodafone bought 70% of Ghana Telecommunications Co. without any negotiations.
Officials say that Ghana Telecommunications Co.’s assets had been highly undervalued. Local papers say the government was abusing its power and acting against the country’s interest.
Binary options onVodafone quickly lost 0.85% of their price at the start of the trading session, after holding on the 38.2% retracement line of the $27.54 – $28.38 move. After a short period of stability, the binary options suddenly fell down to the next support on $28.02 in less than 5 minutes of trading. The $28.02 line represents a 88.6% retracement of the big downside move from $28.26 to $26.00 that took place in the first half of May.
At the moment the binary option’s price is holding just below the EMA 9. We might see an attack by the binary bears, and if it is successful the price might hit the next support at $27.96, which is the 50% retracement of the latest upside move.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.