Let's take a look at Verizon's stock, VZ from a technical analysis point of view. We will be looking at the stock chart of this company. Do complement it with your own fundamental analysis.
Just by looking at the daily chart of VZ, we can see that this stock is holding up very well above its rising 200 MA. This is significant because it shows us that the stock is of investing quality and it is likely to continue moving higher in the long term.
The yellow line above is the daily 200 MA. Somehow this stock has been able to find support at its rising 200 MA many times. This provided traders with quite a few trading opportunities.
The latest setup was a bottoming tail at the 200 MA.
The declining 50 MA may provide VZ with some resistance but I think it will most likely be able to trade above it. And if it can also trade above the downtrend line then VZ is in for some nice bullish move up.
We can gain confidence of VZ's bullish bias by looking at the weekly chart of VZ above. Notice how the stock is still trading above its weekly uptrend line. This time it did not even drop anywhere near the trend line.
That's because there is quite a lot of support which I have highlighted in green. A previous high support and price consolidation support. Some knowledge of support and resistance goes a long way and if you do not understand where I got this support from, do hop on to the Trading Course section to learn more about this concept.
The presence of 2 bottoming tails in this recent lows shows that VZ does not wish to go lower.
The stock may be setting up a weekly double bottom as well and if it can trade back above the downtrend line I have drawn then it is very likely to move higher.
The target for this move will be the previous high. Which is about $60 to $62.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
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