Will VERIZON COMMUNICATIONS INC Break Out? A Technical Analysis Perspective.

Our stock screener has flagged VERIZON COMMUNICATIONS INC (NYSE:VZ) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:VZ for potential movement.

What is the technical picture of NYSE:VZ telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 7 out of 10 to VZ. VZ has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• Both the short term and long term trends are positive. This is a very positive sign.
• VZ is part of the Diversified Telecommunication Services industry. There are 38 other stocks in this industry. VZ outperforms 70% of them.
• In the last month VZ has a been trading in the 31.26 - 36.38 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the performance of all stocks over the past year, VZ turns out to be only a medium performer in the overall market: it outperformed 63% of all stocks.
• VZ is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so VZ is lagging the market slightly.

Our latest full technical report of VZ contains the most current technical analsysis.

How do we evaluate the setup for NYSE:VZ?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:VZ this score is currently 8:

Besides having an excellent technical rating, VZ also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 36.19. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 35.86, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:VZ be traded?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.