VERIZON COMMUNICATIONS INC is showing promising signs of setting up for a breakout.

A possible breakout setup was detected on VERIZON COMMUNICATIONS INC (NYSE:VZ) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:VZ.

Analyzing the Technical Aspects

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall VZ gets a technical rating of 8 out of 10. Although VZ is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• In the last month VZ has a been trading in the 36.46 - 38.88 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• When compared to the yearly performance of all other stocks, VZ outperforms 50% of them, which is more or less in line with the market.
• VZ is part of the Diversified Telecommunication Services industry. There are 38 other stocks in this industry, VZ did better than 59% of them.
• VZ is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so VZ is lagging the market.

For an up to date full technical analysis you can check the technical report of VZ

Why is NYSE:VZ a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:VZ has a 8 as its setup rating:

VZ has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 37.80. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 37.47, a Stop Loss order could be placed below this zone.

How can NYSE:VZ be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.