Technical Setup: VERIZON COMMUNICATIONS INC Appears Poised for a Breakout.

Our stock screener has detected a potential breakout setup on VERIZON COMMUNICATIONS INC (NYSE:VZ). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:VZ.

Technical analysis of NYSE:VZ

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall VZ gets a technical rating of 7 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!
• VZ is part of the Diversified Telecommunication Services industry. There are 36 other stocks in this industry. VZ outperforms 82% of them.
• VZ is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so VZ is lagging the market slightly.
• When compared to the yearly performance of all other stocks, VZ outperforms 59% of them, which is more or less in line with the market.
• In the last month VZ has a been trading in a tight range between 39.14 and 40.96.

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

How does the Setup look for NYSE:VZ

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:VZ scores a 8 out of 10:

VZ has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 41.10. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 40.45, a Stop Loss order could be placed below this zone.

How to trade NYSE:VZ?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:VZ and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

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.