Promising Signs: VERIZON COMMUNICATIONS INC Setting the Stage for a Breakout.

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.

Insights from Technical Analysis

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.

Taking everything into account, VZ scores 9 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, VZ is showing a nice and steady performance.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that VZ is one of the better performing stocks in the market, outperforming 74% of all stocks. We also observe that the gains produced by VZ over the past year are nicely spread over this period.
• 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.
• VZ is part of the Diversified Telecommunication Services industry. There are 34 other stocks in this industry, VZ did better than 66% of them.
• In the last month VZ has a been trading in a tight range between 42.80 and 45.36.

Our latest full technical report of VZ contains the most current technical analsysis.

How does the Setup look 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. Prices have been consolidating lately. 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 44.90. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 42.95, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:VZ and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

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.