Verizon Communications faces strong resistance - Analysis - 25-05-2022

Verizon Communications' stock (VZ) surged 2.03% in the last session, or 1.01 points, as the stock tries to correct the downward short-term trend, settling at 50.68, with trading volumes surpassing 25.4 million shares, above 10-day averages of 22 million shares, becoming the second highest stock in profits on Dow Jones.

The stock is touching the resistance of the 50-day SMA, while hurt by exiting an ascending price channel that guided recent trading, as the RSI also reached overbought levels, forming a negative divergence. 

Therefore we expect the stock to return lower and target the first support at 48.42, provided the resistance of 50.86 holds on.

New York-based VZ presents products and communications services for consumers and companies, through two major branches, for individuals and companies, with a market value of 207 billion.

Expected trend for today: Bearish