Stock of the day: Verizon

In today’s technical spotlight, we focus on Verizon Communications, which is coiling inside a narrowing range and preparing for a decisive breakout. Since February, the stock has been consolidating in a sideways pattern, defined by a strong horizontal support (marked in orange) and a descending resistance line (marked in black). This setup forms a classic triangle pattern, where price action becomes increasingly compressed and traders await a sharp directional move.

Most recently, at the end of April, Verizon tested the lower support but held firm. Then, last week, the price climbed to test the dynamic descending resistance, but once again, buyers lacked the momentum for a breakout. With each failed attempt and the gap between support and resistance tightening, a breakout is now imminent.

How to trade this setup?
A breakout to the upside, with price closing above the descending black trendline, would generate a clear buy signal, suggesting renewed bullish strength and the potential for a new upward leg. Conversely, a breakout to the downside, with price closing below the horizontal support, would confirm bearish momentum and open the door for deeper declines.

Until then, traders may want to stay patient but alert. With the range narrowing quickly, a strong move is likely just around the corner.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-verizon