Stock of the day: Verizon

Today, we will analyze Verizon Communications on our portal for the first time. We will take a closer look on the chart because Verizon is very close to a major buy signal. All it has to do is to grow another 1 USD. Why?

The yellow formation highlighted on the chart is the Inverse Head and Shoulders pattern. It usually promotes the end of a downswing and the start of a new bullish trend. This formation always has a neckline and a breakout of that resistance, activates the Head and Shoulders pattern bringing a legitimate buy signal. Verizon has the neckline around 54 USD, and on the chart, it is labelled as blue. You can see that we are precisely on the neckline right now. What has to happen for the buy signal is that Verizon has to end the day above that blue area.

If VZ breaks the neckline, the next resistance will be the green down trendline, but I guess it should be a formality, and buyers should not have problems with that one. Alternative to the positive scenario is the price bouncing off the blue area and further slide, which would cancel the iH&S pattern. I guess that option is currently slightly less probable.