Is VERIZON COMMUNICATIONS INC Ready to Break Out of Its Range?

Our stock screener has spotted VERIZON COMMUNICATIONS INC (NYSE:VZ) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:VZ.

Technical Analysis Observations

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple 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 74% 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.
• In the last month VZ has a been trading in the 38.95 - 41.98 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that VZ is one of the better performing stocks in the market, outperforming 75% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.

Check the latest full technical report of VZ for a complete technical analysis.

How do we evaluate the setup for NYSE:VZ?

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

Besides having an excellent technical rating, VZ 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 41.56. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 41.31, 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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.