Trading Idea: Is Verizon Breaking Out?
Published on Wednesday, 02 May 2012 05:52 Written by TradersHuddle Wire
New York, May 2nd (TradersHuddle.com) - Shares of Verizon Communications, Inc. (NYSE:VZ) closed the session at $40.56 just above calculated resistance at $40.44. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.
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.
The stock was trading in a well defined range with support at $37.56 and resistance at $40.44. Given that this range was broken, traders will be closely monitoring Verizon's price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Verizon is still near the broken resistance level, traders will be focusing on the $40.44 level to see if the stock holds the breakout without rolling over.