The technical picture of the Verizon Communications Inc. stock (NYSE: VZ) on our daily chart shows that in the beginning of January the share price managed to overcome a medium-term downside resistance line taken from the high of June 10th. After hitting resistance near the 54.83 hurdle on January 10th, the stock corrected lower, however, it continues to trade above that downside line. Therefore, we will take a cautiously bullish approach, at least for now.
A strong rebound from the aforementioned downside line might attract more buyers into the game, as such a move could lead to a further move north. VZ may rise to the 53.94 obstacle, or to the 54.83 zone, marked by the current highest point of January. If that zone fails to provide resistance and breaks, the next possible target might be at 56.19, which is the high of August 17th.
The RSI points slightly lower and sits just fractionally below 50, supporting the idea of remaining cautious for now. The MACD, despite pointing lower and sitting below the trigger line, continues to run above zero, indicating positive price momentum, which comes in line with the scenario of a possible upmove in the near term.
Alternatively, if the share price falls back below the previously discussed downside line and then below the 51.89 hurdle, marked by the low of December 31st, that could temporarily scare off some buyers. VZ may then drift to the 51.14 obstacle, a break of which might set the stage for a move to the 49.69 level. That level marks the lowest point of December.
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