Trading Idea: - Is Verizon close to Resistance?
Published on Tuesday, 05 February 2013 06:16 Written by TradersHuddle Wire
New York, February 5th (TradersHuddle.com) - Shares of Verizon Communications, Inc. (NYSE:VZ) are trading very close to calculated resistance at $44.84. The stock ended the trading session at just $44.52, which is near levels that make it difficult to buy or start a position.
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's stock range is defined by its calculated support defined at $41.50 and by the resistance level at $44.84; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Verizon. However, as the stock pulls back towards $41.50 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $44.84 then traders will get an opportunity to enter the stock as it moves to a higher range.