Verizon Communications Inc. (VZ) broke out on the upside. I reviewed the charts and indicators of VZ last week , where I recommended that "Traders, however, could go long VZ on strength above $56 looking for gains to around $70. Risk below $53." VZ gapped above $56 yesterday so I will assume that traders who were interested did in fact go long. Let's check in on VZ again.
In this updated daily bar chart of VZ, below, we can see the gap to the upside yesterday and the follow-through buying today. Volume increased which is a positive and the daily On-Balance-Volume (OBV) line rose to a new high to confirm the new price high. The Moving Average Convergence Divergence (MACD) turned up from the zero line for a fresh go long signal.
In this weekly bar chart of VZ, below, we can see the two-day rally without the price gap. Prices have broken above the 2016 highs. The 40-week moving average line is rising. The weekly OBV line is turning up and the MACD oscillator remains very bullish.
In this Point and Figure chart of VZ, below, we can see the recent gains and a upside price target of $72.
Bottom line strategy: hold longs, raise stops to $54 and look for gains to the $70-$72 area.