Verizon Communications has rallied since late October, and some traders may think its uptrend is fading.
The first pattern on today's chart is the pair of bullish gaps on October 24 and January 23 after strong quarterly reports. Notice how prices continued higher after the initial surge, but faded after the second move. That may suggest improved fundamentals are now priced in.
Second is the narrowing range over the last two weeks. Is that potential triangle breaking to the downside?
Third, VZ has dipped under its 50-day simple moving average (SMA). That may reflect weakness over the intermediate term.
Finally, you have some potentially bearish signals over the shorter term: MACD is falling and the 8-day exponential moving average (EMA) has crossed below the 21-day EMA.
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
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TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com...isclosureTSCompanies for further important information explaining what this means.
The first pattern on today's chart is the pair of bullish gaps on October 24 and January 23 after strong quarterly reports. Notice how prices continued higher after the initial surge, but faded after the second move. That may suggest improved fundamentals are now priced in.
Second is the narrowing range over the last two weeks. Is that potential triangle breaking to the downside?
Third, VZ has dipped under its 50-day simple moving average (SMA). That may reflect weakness over the intermediate term.
Finally, you have some potentially bearish signals over the shorter term: MACD is falling and the 8-day exponential moving average (EMA) has crossed below the 21-day EMA.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com...isclosureTSCompanies for further important information explaining what this means.