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: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More
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