VZ, Trading In Triangle, Possible Opportunity On The Short-Side!

Hello Traders Investors And Community, welcome to this analysis where we are looking at the recent events, the current price-structure and what we can expect the next times from VZ which is a company in the communication industry that is sending some interesting signals at the moment which can be measured with a trade on the short-side when confirmed. The stock is a well-known stock agitating in the communication industry since the Millenium crash in 2000 and had some first startings within the new glass fiber technology that should be expanded in many areas, besides that we see a consolidation since the corona-crisis where VZ does not really show a direction or strength to the upside this makes the whole environment certainly more bearish as it shows weaker signs as the rest market which is near its all-time-highs or already above them, therefore, we are looking at the 4-hour local's timeframe.

When looking at my chart you can watch that the stock is building up this massive huge triangle formation with the lows established after the corona-breakdowns and now consolidating in this huge wide range which you can see marked in the blue trend lines. The fact that VZ is consolidating below the 500-EMA which you can see marked in my chart in black makes the consolidation more bearish than bullish at all where we have other stocks that sending bullish signals above the 500-EMA this fact makes the stock more bearish right now. Also, we have the consolidation of the 100- and 30-EMA you can watch marked in orange and green within my chart which is confirming the triangle and the stock confirmed most of the time below these EMAs, therefore, the overall triangle which is forming currently is within a high possible spectrum a bearish triangle that can confirm to the downside and activate targets when confirmed.

The next hours and days we can expect the stock to complete its wave count it is forming with the final wave E at the bearish-confluence resistance you can see marked in my chart in red, this final wave of the major wave count will complete the triangle when confirmed with high volatility below the lower boundary of the triangle, remember that this has to happen with the proper high volatile breakdown a mere piercing of this line or a breakout and back up again can signal a fake breakout and therefore a bear-trap. This scenario can be traded rightly on the short-side when it confirmed with an immediate entry after the breakout which is really aggressive in this case or entry after the lower boundary has confirmed with a pull-back which should be the smarter option in this case, although both scenarios are possible traders should decide accordingly to individual risk-preferences.

We saw a big amount of the stock-market last weeks recovering the losses established with the corona-breakdowns and providing a pull-back and some uptrends but we should keep in mind that although this looks bullish at the moment it can still be a huge bull-trap as the real economy has really in no solid means recovered successfully from the breakdowns seen this year. In comparison with VZ an increase of bearish pressure in the whole other market and in leading indices like the S&P or NASDAQ can expand the possibility for bearish continuation in this stock. We need to elevate and look at how the situation is developing but as there are only marginal fundamental factors providing the bullishness of the whole other market beside the fresh money flowing into the market we should keep an eye of possible bearish continuation to the downside to trade the right direction and profit from the right outcomes.

In this manner, thank you for watching, support for more market insights and all the best!
Sometimes opportunities are hidden in the modern markets like unmined gold.

Information provided is only educational and should not be used to take action in the markets.