Airtel Africa (LON: AAF) share price has been in a downtrend since last year. The shares of the Indian multinational seem to have found strong support within the 102p-104p region. In the past few weeks, the shares have shown a significant recovery.
After a 3.88% gain on Tuesday, Airtel Africa shares opened higher today. The bulls couldn’t gain strength above the 200 MA, and the candle turned red. Nevertheless, the shares were still up 0.35% from their previous close. The stock seems to be attempting a major breakout, which I’ll discuss later.
In the Q1 of its fiscal year, Airtel Africa plc swung to a loss. The UK-listed Indian multinational posted a net loss of $151 million. This was a decrease from the $178 million loss during the same quarter last year. Nevertheless, the CAPEX remained unchanged at $140 million.
In other news, Airtel Africa’s subsidiary, Airtel Uganda’s IPO is making waves. The African telco intends to raise $200 million, which will make it the biggest IPO in Uganda. It will be the second Telco to be listed on the Uganda Securities Exchange.
As evident from the following LON: AAF chart, the shares have been respecting the downward trendline since February 2022. After a recent bounce from the monthly lows, the stock is attempting a breakout from the trendline. Such a breakout would make Airtel Africa share price forecast very bullish.
However, it seems that the bulls are lacking momentum above the 200-day moving average, which currently lies at 115.5p. If this key moving average holds, bulls may target 125p after breaking out of the downward trendline.
In the meantime, I’ll keep sharing updated Airtel Africa price targets and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 30, 2023, 13:59 BST 13:59