Trade of the Day: Verizon Communications (VZ)

VZ has a strong dividend yield and strong fundamentals

By John Jagerson and Wade Hansen, Editors, Strategic Trader

http://bit.ly/2NzpXbj

To receive further updates on this Verizon Communications (NYSE:VZ) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of SlingShot Trader today.

We are opening a new bullish trade on Verizon Communications (NYSE:VZ). One of the interesting shifts in market sentiment we have been noticing during the past few weeks is an increase in demand for stable, dividend-paying stocks.

Yes, the big jump in technology stocks yesterday helped lift the S&P 500 up to new all-time highs, but most of the driving bullish momentum during the past few weeks has been generated outside of the Technology sector.

VZ is one of those stocks that has been consolidating higher and appears ready to break out to the upside. This is thanks in large part to its strong dividend yield of 4.47% and its strong fundamentals, which are driven largely by its stable user base.

If VZ can climb above resistance at $55, it will complete an “ascending triangle” bullish continuation pattern. It’s called an ascending triangle because, while the resistance level that forms the top of the consolidation range is horizontal, the support level that forms the bottom of the range is up-trending, or ascending.

When this breakout occurs, we anticipate the stock will climb up toward $57 — based on the $2 height of the current consolidation range and the breakout point of $55.

‘Buy to open’ the VZ October 19th $55 Call (VZ181019C00055000) for a maximum price of $0.58.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.


Article printed from InvestorPlace Media, https://investorplace.com/2018/09/trade-of-the-day-verizon-communications-vz/.

©2018 InvestorPlace Media, LLC