Verizon security has been penalized and now appears oversold close to a strong support area.
During a conference, the chief financial officer suggested a momentary drop in margins, which generated a marked decline on the stock. However, analysts consensus remains buyer with a target price of USD 53.2, which represents a real appreciation potential.
Technically, the stock is back to the lower limit of its evolution area at USD 46. Moving averages are flattened and technical indicators show an oversold situation. The area of USD 46 could therefore lead to a positive reaction in the coming sessions and allow shares to rebound toward the USD 49.34 short term resistance.
The proximity of the 46 USD support may therefore be considered as an opportunity, in order to take a long position on Verizon. In the first instance, we will aim a return to the 49.35 resistance to take some profits, a potential of around 5.2%. This dynamic stimulus would fill the recent gap under USD 48. A stop loss can be positioned under the currently tested support.