VERIZON COMMUNICATIONS INC is setting up nicely for a breakout.

Our stock screener has identified VERIZON COMMUNICATIONS INC (NYSE:VZ) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:VZ.

What is the technical picture of NYSE:VZ telling us.

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, VZ scores 7 out of 10 in our technical rating. VZ was one of the better performers in the overall market, it is still ok in the medium term time frame, but very the very recent evolution is negative.

• When comparing the yearly performance of all stocks, we notice that VZ is one of the better performing stocks in the market, outperforming 80% of all stocks. On top of that, VZ also shows a nice and consistent pattern of rising prices.
• VZ is part of the Diversified Telecommunication Services industry. There are 34 other stocks in this industry. VZ outperforms 81% of them.
• VZ is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so VZ is performing more or less in line with the market.
• In the last month VZ has a been trading in the 38.70 - 42.52 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.
• Both the short term and long term trends are neutral. So this is not the most entertaining stock around.

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

Why is NYSE:VZ a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:VZ is 8:

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. A pullback is taking place, which may present a nice opportunity for an entry. 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 40.71, a Stop Loss order could be placed below this zone.

How to trade NYSE:VZ?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation 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.

More breakout setups can be found 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.