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

VERIZON COMMUNICATIONS INC (NYSE:VZ) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:VZ.

Zooming in on the technicals.

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.

We assign a technical rating of 7 out of 10 to VZ. VZ has been one of the better performers in the overall market. Some doubts were observed in the medium time frame, but recent action was again very positive.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, VZ did better than 73% of all other stocks. On top of that, VZ also shows a nice and consistent pattern of rising prices.
• 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 39.05 - 41.94 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.
• VZ is an average performer in the Diversified Telecommunication Services industry, it outperforms 69% of 34 stocks in the same industry.

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

How do we evaluate the setup 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 9 out of 10:

VZ has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 41.01. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 40.72, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for VZ in the last couple of days, which is a good sign.

How to trade NYSE:VZ?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.

Every day, new breakout setups can be found on ChartMill 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.