Earnings Play: Verizon Communications
Jason Lubin October 21, 2020 2:25 AM
Downward breakout from an ascending wedge pattern.
On Wednesday, before market, Verizon Communications (VZ) is expected to release third quarter EPS of $1.22 compared to $1.25 last year on revenue of approximately $31.6 billion vs. $32.9 billion a year earlier. Verizon is the largest wireless provider in the U.S. and on October 20th, the company reported that it teamed up with Nokia to offer private 5G capabilities to enterprises in Europe and Asia-Pacific.
Looking at a daily chart, in logarithmic scale, Verizon's stock price broke out to the downside of an ascending wedge pattern that price had been rising within since late-March. Price has also penetrated to the downside of the 200-day simple moving average (SMA). Price will most likely continue to fall until it reaches its first support level at 55.50. At 55.50 price could possibly consolidate and attempt to rebound. If the rebound fails then price could break below 55.50 and decline further to 53.75. If price happens to rebound, traders should first look to the 200-day SMA as resistance. If prices rises back above the 200-day SMA then traders should look to the lower trendline for resistance. If price re-enters the pattern, then the breakout has failed.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.