• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Verizon Could Be Calling You Soon From Lower Price Levels

Let's stand aside on VZ for a couple of weeks to see how things develop.
By BRUCE KAMICH
May 21, 2020 | 09:30 AM EDT
Stocks quotes in this article: VZ

In another of his "Executive Decision" segments during Mad Money Wednesday night, Jim Cramer checked in Hans Vestberg, chairman and CEO of Verizon Communications (VZ) , the telecom provider with an attractive yield.

Vestberg said communications are essential which is why Verizon chose to accelerate their investments into 5G. He said there are a small percentage of customers taking advantage of their Keep America Connected program, but so far they have not seen sizable disruptions.

Vestberg said Verizon is building the fastest 5G network which is up to 20 times faster than their 4G LTE and will support transactions, video communications and augmented reality services, Vestberg said.

Let's call up a few charts.

In this daily bar chart of VZ, below, we can see that prices "rolled over" from September to January and then started that all too familiar decline into a March low. Prices bottomed late in March or about a week behind the technology leaders. VZ rebounded to the upside but has rolled over again during April.

Prices are back below the declining 50-day moving average line. The daily On-Balance-Volume (OBV) line has been in a downtrend from early February and tells us that sellers of VZ have been more aggressive even during the temporary price recovery.

The Moving Average Convergence Divergence (MACD) crossed above the zero line last month for a buy signal but it has since slipped back below the line for a new sell signal.

In this weekly bar chart of VZ, below, we can see a bearish setup. Prices are below the declining 40-week moving average line.

The weekly OBV line has been pointed down for about six weeks. The MACD oscillator is in a bearish configuration below the zero line.

In this first Point and Figure chart of VZ, below, we used daily price data but plotted percentage swings instead of even dollar increments. Here the chart is indicating a nearby price target around $52.

In this second Point and Figure chart of VZ, below, we used a traditional even dollar increment for plotting. Here the chart covers a lot more price history and a potential upside price target of $76 is shown. Big difference.

Bottom line strategy: Three of the four charts we present above are bearish. Let's stand aside on VZ for a couple of weeks to see how things develop.

(Verizon Communications is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells VZ? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Telecommunications | Mad Money | Executive Interview | Telecom Services

More from Investing

Bearish Bets: 2 Nasdaq Stocks You Should Consider Shorting This Week

Bob Lang
Feb 28, 2021 10:30 AM EST

These names are displaying both quantitative and technical deterioration.

Jim Cramer: What History Tells Us About Bond-Rate Scares Like This

Jim Cramer
Feb 27, 2021 2:01 PM EST

We could have some real pain ahead for some stocks. Five different kinds.

What's Next for Bonds, TLT and Interest Rates?

Bruce Kamich
Feb 27, 2021 12:30 PM EST

Thoughts and observations on Treasuries and the direction of interest rates.

Navigating a Market Correction

James "Rev Shark" DePorre
Feb 27, 2021 10:00 AM EST

The most critical factor in long-term market success is the ability to effectively navigate market corrections.

Kass: Time to Introduce a Financial Transaction Tax and End Weekly Stock Options

Doug Kass
Feb 27, 2021 8:15 AM EST

I believe more sensible regulations should be considered and enforcement is needed to adapt to gains in technology.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:51 AM EST REAL MONEY

    Watch Bob Lang and Doug Kass Discuss Short-Selling!

    Bob Lang and Doug Kass with an engaging and educat...
  • 11:32 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Navigating a Market Correction
  • 11:29 AM EST GARY BERMAN

    Where Does the Nasdaq Go From Here?

    Where does the Nasdaq Composite (CCMP) index go fr...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login