July 18 Chart of the Day - Verizon
Can you hear us now...
Verizon (VZ) shares have tanked since a Wall Street Journal report revealed the telecom giant's historical use of lead-covered cables is contaminating many parts of the country. The threat of potential legal action and uncertainty about how the lead issues will be resolved have prompted multiple Wall Street firms to downgrade the stock. AT&T (T) was also named in the WSJ report and their stock is now at a 30 year low.
So is it time to rush in and buy either of these? Hmmm.... Not so fast.
Verizon is flirting with long time support and structure that could provide a relief bounce but know that there is also price action technical analysis structure that could drive price down much lower.
One can see on the first monthly support/resistance and trend chart that the $31 area could be a bounce level however when using additional structure and more advanced low to low Fibonacci tools as seen on the second chart it's possible for price to continue falling below $30 or even further...
So what's next?
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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