Verizon May Be Losing its MojoVerizon 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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