Looking at the technical picture of the Verizon Communications Inc stock (NYSE: VZ) on our 4-hour chart, we can see that yesterday, it broke above a short-term tentative downside resistance line, drawn from the high of December 9th. The share price managed to stay above that line but failed to remain above the 200 EMA. Although new buyers might be interested in the stock at its current level, more of them could join in if VZ travels above yesterday’s high, at 57.61. For now, we will take a somewhat positive approach.
If, eventually, the share price rises above that 57.61 barrier, this would also place VZ above the 200 EMA, this way potentially raising the buying-interest, as the stock would confirm a forthcoming higher high. VZ could travel to the 58.62 obstacle, or even to the 59.55 zone, marked by the current highest point of 2021, which may temporarily halt the uprise. That said, if the buyers are still active, the next possible aim might be at 60.77, marked by the high of December 18th.
Although the RSI is pointing slightly lower, it remains well above 50. The MACD continues to point slightly higher, while running well above zero and its trigger line. Although the MACD clearly supports the upside scenario, as it continues to show rising upside price momentum, the RSI is slightly on the modest side. The indicator is still showing positive momentum, but for now it comes in line with the idea of waiting for a break above the aforementioned 57.61 hurdle first.
On the downside, if the share price falls below the previously-discussed downside line and slides below the 56.54 zone, marked by yesterday’s low, that could spook new buyers from entering any time soon. VZ could drift further down, potentially aiming for the 55.64 obstacle, or even the 54.68 area, marked by the inside swing low of February 9th. If there are still no new buyers around that hurdle, the stock might slide further, potentially targeting the 53.84 level, which is the current lowest point of February.
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