- VZ stock price struggles to hold 50-day EMA and faced rejection from the 200-day EMA
- Verizon stock price has reacted violently due to Q4 earnings and has created a new 52-week low at $32.79
- NYSE: VZ stock price closed with gains of $1.99% and lack direction after the mixed Q4 earnings
Verizon stock price is trading with mild bullish cues and bulls are trying to defend the 50 day EMA support level. However, if the market sentiment turns bearish then it will negatively impact the VZ stock for a short period of time. Currently, NYSE: VZ stock price is closed at $40.42 with intraday gains at 1.99%.
Verizon stock price returning back to the bullish track ?
On a daily time frame, Verizon stock price is rising upward while forming higher high swings and showed a wild speculative move in both directions due to Q4 earnings.
In the mid of December, VZ stock price took support at $36.00 and gained some positive momentum which has helped the bulls to reclaim above the 50-day EMA and continue the upward momentum. Recently, the VZ price approaches the 200-day EMA to reverse the positional trend in the favor of bulls, but unfortunately, after a few days of consolidation, VZ price is again reversing down which shows that the bears are still active on the higher levels
Verizon communication declared the Q4 2022 earnings, which stated the total operating revenue stood at $35.3 billion with an increase of 3.5% from the fourth quarter of 2021 and the net income stood at $6.7 billion with an increase of 41.4% from the fourth quarter of 2021. Shows that the company’s financials recovered in the current quarter as compared to Q4 2021.
VZ stock technicals are mildly bearish and bears are trying to drag the price down. However, the price action is still in the bulls’ grip and if bulls succeed to hold the price above the 50-day EMA then we may see more upward movement in the coming days.
On the higher side, $42.65 will act as immediate resistance for the bulls followed by the next hurdle at 46.00.
On the other hand, if market sentiment turns negative, then it can directly impact the sentiment of investors which can trigger short-term selling in the VZ stock. However, $36.00 and $34.00 will act as saviors for bulls. The MACD has generated a negative crossover which indicates bearishness and the RSI at 53 denotes the balance between bullish and bearish positions.
Summary
After analyzing the technicals of the Verizon stock, it looks like price will enter into a long-term consolidation range between 34.00 to $46.00, and the downside seems to be limited in the stock. Therefore, traders may look for playing the mean reversal opportunities in the technical levels mentioned above by keeping the boundaries as SL.
However, if the price drops below $34.00 bears can take control of the demand zones and drag the price further down.
Technical levels
Resistance levels: $42.65 and $46.00
Support levels: $36.00 and $34.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/01/25/verizon-communication-inc-vz-stock-price-analysis-vz-stock-price-reacted-violently-in-q4-earnings-what-next/