Published On: Thu, Apr 27th, 2017

Verizon Communications Inc. (VZ/NYSE/S&P500)


Industry: telecommunication services

Current trend

Since the previous week Verizon shares have been falling in view of a week financial report for Q1 2017. The revenue of the company dropped by 7.8% in annual and 7.6% in quarterly terms up to $ 29.81 bln and failed to meet the outlooks of The Wall Street analysts. RPS amounted to $ 0.95 and also appeared to be lower than expected (the forecast value was $ 0.98).

In 2017 the company plans its revenue to be on the level of 2016, its capital investments to make up $ 16.8-17.5 bln, and effective income tax rate to reduce to 34%-36%.

During last week, Verizon shares decreased by 3.23%. S&P500 index went up by 1.52% during the same period.

Comparing company’s multiplier with its competitors, we can say that Verizon’s shares are neutral. 

Key levels

The technical picture in the company’s shares is uncertain. Indicators don’t give a clear signal: the price consolidated between MA(50) and MA(200), and MACD started to go up. Currently key support and resistance levels are 47.00 and 47.50 respectively. Positions may be opened is the price consolidates above or below these levels. 

Support levels: 47.00, 46.60. 

Resistance levels: 47.50, 48.25, 49.00.   

Trading tips

The emitter shows a strong reverse formation of technical analysis — the divergence of the price and MACD indicator.  If the price consolidates above the local resistance level of 47.50, one may consider buying #VZ. Stop-loss will be placed at 47.15. The target movement level will be 48.20-48.50.    

Further fall of the company’s shares is also possible. If the price consolidates above 47.00, one may consider selling #VZ. There is a potential of movement to 46.40-46.00. Stop-loss should be placed at 47.30. 

Trading tips will be relevant for 2-3 days. 

Forex Analysis

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