Here's what Jim Cramer had to say about one of the stocks that callers offered up during the Mad Money "Lightning Round" Thursday evening: Verizon Communications (VZ) . "I hear that the quarter will be better than expected. I want to be a buyer," he said.
Let's check out the charts of VZ.
In this daily bar chart of VZ, below, we can see that prices have essentially gone nowhere the past 12 months. Notice how flat the 200-day moving average line is?
The On-Balance-Volume (OBV) line has moved up and down with the price action but the trading volume in February and March was heavier than during the rest of the year. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but not far from crossing back above it.
In this weekly Japanese candlestick chart of VZ, below, we can see a long sideways consolidation pattern between $53 on the downside and $62 on the upside. The 40-week moving average line has been "whipsawed" for years.
The weekly OBV line has chopped around with prices and the MACD oscillator has crossed above and below the zero line.
In this daily Point and Figure chart of VZ, below, we can see a potential downside price target in the $52 area.
In this weekly Point and Figure chart of VZ, below, we used close only price data and a five box reversal filter. A lot of price history is displayed. The software is reading the X's and O's and sees a price target of $95. Hard to believe right now.
Bottom line strategy: VZ could continue to trade sideways but an upside breakout could get going around the middle of July. Stay tuned.