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Fan Yang

Verizon Communications (VZ) Testing Key Consolidation Resistance

Verizon Communications $VZ has been in consolidation mode since late 2018 when price retreated sharply from just above $61 to around $53. 

VZ Daily Chart

(click to enlarge)

Bullish Signs:
- During the consolidation price did not come back down to $63 in May/June and in July/August. This suggests a slight bullish bias.
- Based on this bias, I am inclined to think VZ will eventually break above the $61-$61.30 resistance. 
Resistance, Downside:
- However, I think there might be some consolidation and a bearish swing before that, especially if the broader market becomes tentative like it did during the 9/24 session.
- If VZ indeed falls, I would monitor the $57 area. I think this area should be support if VZ is to eventually break out.
- In fact a hold above $57 keeps VZ above the 200-day SMA. 
- Another bullish sign would be if the RSI eventually holds above 40 after a period of correction.

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