Current trend

Shares of Verizon Communications Inc., one of the largest American telecommunications companies, are trading within a long-term ascending channel: at the beginning of last month, the price reached its lower limit near 39.84 (Murrey level [2/8]), from which it resumed growth.

Currently, the price has returned to the positive part of the Murrey trading range and is testing the 41.80 mark (Murrey level [7/8]), consolidating above which will allow quotes to continue growing towards the targets of 42.19 (Murrey level [8/8]), 42.58 (Murrey level [ 1/8]), 42.97 (Murrey level [ 2/8]). The key for the "bears" is the central mark of the Murrey trading range at 40.62 (Murrey level [4/8]) below the central line of Bollinger Bands, the breakdown of which will ensure the return of the trading instrument to the target of 39.84 (Murrey level [2/8]), but so far this scenario seems less likely.

Technical indicators confirm the continuation of the uptrend: Bollinger Bands are directed upwards, MACD is increasing in the positive zone, and Stochastic has reversed down, which does not exclude a corrective decline, but its potential is seen to be limited.

Support and resistance

Resistance levels: 41.80, 42.19, 42.58, 42.97.

Support levels: 40.62, 39.84.

Trading tips

Long positions can be opened above 41.80 with targets of 42.19, 42.58, 42.97 and a stop-loss around 41.50. Implementation period: 5–7 days.

Short positions should be opened below the 40.62 mark with a target of 39.84 and a stop-loss around 41.00.