On the hourly chart of Vodafone Group PLC we are tracking a nice impulsive wave pointing south. This is the most common Elliott Wave pattern and according to The Theory we should now expect a counter-trend movement in three waves for (2)/B, that will complete the 5-3 cycle, after which another five-wave decline should follow.
Our expectations for an upcoming three-wave rally are further confirmed by a bullish divergence between price and the Relative Strength Index indicator. The proper trading strategy here is to wait until the correction is over and then open short positions in Vodafone Group PLC’s shares. Count would be invalidated if prices reach above the start of the impulsive decline – 2.521. Our first target is below 2.176.