VZ closes within previous day's range
Verizon Communications Inc. (VZ) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, VZ ended the week -4.34% lower at 57.68 after losing $0.40 (-0.69%) today, but still significantly outperforming the Dow Indu. (-2.24%) following today's NFP report. Today's close at 57.68 marks the lowest recorded closing price since November 7th. Trading $0.52 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (VZ as at Dec 07, 2018):
Friday's trading range has been $1.09 (1.88%), that's slightly below the last trading month's daily average range of $1.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for VZ.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 57.16 (S1). Prices are trading close to the key technical resistance level at 58.44 (R1). After having been unable to move lower than 57.16 in the previous session, Verizon Communications found buyers again around the same price level today at 57.34. The last time this happened on November 26th, VZ gained 2.50% on the following trading day.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 57.16 where further sell stops might get triggered. Further selling could move prices lower should the market test November's nearby low at 55.55.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Verizon Communications. Out of 565 times, VZ closed higher 56.11% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 50.27% with an average market move of 0.30%.