VZ pushes through key technical resistance level
Verizon Communications Inc. (VZ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
VZ ended Thursday at 53.54 surging $3.60 (7.21%), outperforming the Dow Indu. (6.38%). This is the biggest single-day gain in over 11 years. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 51.91, the stock confirmed its breakout through the prior session high after trading up to $1.99 above it intraday.
Daily Candlestick Chart (VZ as at Mar 26, 2020):
Thursday's trading range has been $4.39 (8.85%), that's far above the last trading month's daily average range of $2.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VZ.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 50.88 (now S1), which is likely to act as support going forward. The last time this happened on March 4th, VZ actually lost -1.65% on the following trading day. Prices are trading close to the key technical resistance level at 54.37 (R1).
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Verizon Communications. Out of 282 times, VZ closed higher 57.45% 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 53.55% with an average market move of 0.34%.