How to Play Verizon

Published on Wednesday, 08 February 2012 05:36 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Verizon Communications, Inc. (NYSE:VZ) closed the trading session at $37.92 near its 50 day and 200 day moving averages currently set at $38.39 and $36.91 respectively. Verizon's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.

Verizon Communications Inc. (NYSE:VZ) is an integrated telecommunications company that provides wire line voice and data services, wireless services, Internet services, and published directory information. The Company also provides network services for the federal government. Verizon is the owner of the largest wireless network, with more subscribers in the U.S. Verizon was founded in 1983 and is based in New York, New York.

Verizon price action seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Verizon with a small position and wait for the stock to break out above the 50 day moving average at $38.39, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $36.91 breaks it could mean further downside in the horizon for Verizon.