Don't Ignore This Chart

Verizon Downgraded, Tests Short-Term Support

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JP Morgan downgraded Verizon (VZ) this morning, instead choosing AT&T (T) and that has put pressure on VZ in the early going.  Thus far, buyers have emerged and VZ has risen off its opening gap lower.  Technically, VZ is continuing its downtrend that it started just over a month ago near 51.00 with today's opening price testing six month trendline support and nearing the Fibonacci 50% retracement level.  Volume is very heavy so a nice finish could enable today's red hollow candle to establish solid short-term support in the days ahead.  A weak finish, however, would likely send VZ lower to test the early March lows and the Fibonacci 61.8% retracement level - both of which are between 46.50-47.00.  Check out the chart:

Happy trading!

Tom

Tom Bowley
About the author: co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years. His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading. A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015. Learn More
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