VERIZON COMMUNICATIONS INC (NYSE:VZ) - A Stock with Strong Technicals and a Promising Setup

VERIZON COMMUNICATIONS INC (NYSE:VZ) has been identified as a potential breakout candidate by our technical screening process. The stock currently holds a solid technical rating and presents a favorable setup pattern, suggesting it may be worth watching for investors focused on technical trends. Below, we examine why VZ stands out.

Technical Strength

• Technical Rating of 7: VZ scores well on long-term trend strength, with its price above key moving averages (20-day, 100-day, and 200-day). The stock has outperformed 74% of the market over the past year, indicating relative strength.
• Support Levels: Multiple support zones exist between $37.80 and $43.24, providing a cushion against downside moves. The strongest support sits near $42.59-$43.24, formed by trendlines and moving averages.
• Trend Consistency: While the short-term trend is neutral, the long-term trend remains positive, suggesting stability in its upward trajectory.

Setup Quality

• Setup Rating of 8: VZ is consolidating within a recent range of $41.86-$44.55, indicating a potential base formation. Tight trading near the middle of this range could present an entry opportunity.
• Resistance Breakout Potential: A move above $44.16 could signal a breakout, with resistance zones at $43.42-$44.15 and $45.21 acting as next targets.
• Volume and Liquidity: Average daily volume remains healthy at over 22 million shares, though recent volume has dipped slightly.

For a deeper look at the technical dynamics, review the full technical report for VZ.

Our Technical Breakout Setups screener lists more stocks with strong technical setups, updated daily.

Disclaimer

This is not investment advice. The observations here are based on technical analysis at the time of writing, and market conditions can change rapidly. Always conduct your own research before making investment decisions.