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 at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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