The Verizon stock price (NYSE:VZ) is creeping today, but it may be just a “dead cat bounce.” Meaning that it is just a temporary lift in share price, before a fall. From a high level review of the technicals of Verizon, it appears to be more a price consolidation, than a rally or big drop.
The stock has recently been hit by the “cord cutting” trend. This has been a huge risk for all cable providers as younger generations stop buying cable and switch to Internet streaming TV. Verizon is rolling out a new pricing model to simplify and compete with the “cord cutting” trend.
Verizon shares are strengthening from a 4-month low of January 9 and are currently trading at a 3.9% discount to the December 52-week high. The company announced the publication of financial results for the past quarter on January 28. The Wall Street expects sales to grow by 0.45% (YoY) to USD 34.43 billion, with earnings growth of 2.68% (YoY) to USD 1.15. Within the previous week, the stock of Verizon grew by 1.39%. S&P500 went up by 1.28% within the same period.
Trading Day Today
Investors remain focused on the first phase of the US-China trade deal. American business leaders interviewed by CNBC evaluate the results of the deal with great restraint. The conclusion of the deal itself is considered positive, but it is not a solution to all problems. A lot will depend on the course of negotiations on the “second phase” of the deal and the implementation of the obligations by the parties.
During the day, investors also expect the release of data on the construction market and industrial output. It is expected that the rate of construction of new houses in the United States may increase from 1.365 to 1.375 million, and the number of issued building permits will be reduced from 1.474 to 1.468 million. Industrial output may show a decrease of 0.2%, which will pressure the dollar.
Oil quotes resumed growth today. Prices are supported by the growth of Chinese production, implying an increase in energy consumption. In the evening, market participants are awaiting the Baker Hughes report on active oil rigs in the US. The last time, the number of rigs decreased from 670 to 659 units. The continuation of this trend may support prices.
Verizon Stock Support and Resistance
Shares of the Verizon recently went down and has updated local lows. At the moment, #VZ shares are consolidating. The key trading range is 58.75–59.75. Verizon stock has the potential to further correction. Indicators don’t give a clear signal: the price is testing MA(200); MACD histogram started to grow. Positions are to be opened from key levels. Comparing company’s multiplier with its competitors in the industry, we can say that #VZ shares are SELL right now, but could turn BULLISH. Investors need to make sure that Verizon stock breaks through trading ranges and bollinger bands.
Support levels: 58.75, 57.50. Resistance levels: 59.75, 60.50, 61.30.
Verizon Stock Trading Ideas
If the price consolidates below the support level of 58.75, #VZ may continue to correct. Potential profits should be locked in by orders at 57.75, 57.00, and 56.00. Stop-loss – 59.75. If the price consolidates above 59.75, buying #VZ should be considered. The moving potential is aimed at the area of 61.30–62.20. Stop-loss – 58.75. Implementation period: 3 days.
Verizon Stock Recommendations
Nov-14-19 Downgrade HSBC Securities Buy → Hold $65
Nov-04-19 Downgrade Nomura Buy → Neutral $67 → $65
Oct-16-19 Initiated Bernstein Mkt Perform
Jul-08-19 Downgrade Citigroup Buy → Neutral $62
May-30-19 Downgrade UBS Buy → Neutral
Dec-12-18 Downgrade Morgan Stanley Overweight → Equal-Weight
Dec-03-18 Downgrade JP Morgan Overweight → Neutral
Oct-29-18 Reiterated Morgan Stanley Overweight $56 → $58
Sep-04-18 Downgrade MoffettNathanson Buy → Neutral
Sep-04-18 Downgrade Barclays Overweight → Equal Weight $56 → $50
Jul-11-18 Initiated Credit Suisse Outperform
Jun-07-18 Resumed Jefferies Hold $52
May-11-18 Upgrade JP Morgan Neutral → Overweight
Apr-25-18 Upgrade SunTrust Hold → Buy
Apr-23-18 Upgrade Barclays Equal Weight → Overweight $56
Mar-28-18 Upgrade HSBC Securities Hold → Buy
Mar-13-18 Initiated Guggenheim Buy $58
Feb-28-18 Upgrade MoffettNathanson Neutral → Buy
Jan-22-18 Upgrade Scotia Howard Weil Sector Perform → Sector Outperform
Jan-16-18 Downgrade MoffettNathanson Buy → Neutral
Verizon Stock 1 Day Moving Averages – SELL
Name Value Action
Exponential Moving Average (5) 59.51 Buy
Simple Moving Average (5) 59.35 Buy
Exponential Moving Average (10) 59.64 Buy
Simple Moving Average (10) 59.42 Buy
Exponential Moving Average (20) 59.99 Sell
Simple Moving Average (20) 60.33 Sell
Exponential Moving Average (30) 60.14 Sell
Simple Moving Average (30) 60.58 Sell
Exponential Moving Average (50) 60.15 Sell
Simple Moving Average (50) 60.25 Sell
Exponential Moving Average (100) 59.72 Buy
Simple Moving Average (100) 60.02 Sell
Exponential Moving Average (200) 58.72 Buy
Simple Moving Average (200) 58.58 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 60.49 Neutral
Volume Weighted Moving Average (20) 60.40 Sell
Hull Moving Average (9) 59.48 Buy