Let’s analyze the provided chart of Verizon Communications Inc. (VZ) on the daily timeframe and break it down systematically to understand its current trend, key levels, and potential trade setups.
1. Trend Analysis:
Moving Averages:
The stock is trading above the 8 EMA (yellow line) and 21 EMA (blue line), indicating a bullish trend.
The price recently moved above the 200 EMA (dotted purple line), further confirming momentum.
Price Action:
The stock had a strong breakout from a previous consolidation range.
A series of higher highs and higher lows suggests the uptrend is continuing.
The last few daily candles show strong bullish momentum with large-bodied candles.
2. Key Support and Resistance Levels:
Dark Pool Levels (White Dashed Lines):
BB SW: 39.50 (A significant area where large institutional orders were executed.)
BA SW: 41.25 (A more recent Dark Pool level, which is now acting as a support level.)
Pivot Levels & Resistance Areas:
R1: 40.99 (Already broken, now acting as support.)
R2: 42.58 (Next potential resistance.)
R3: 44.28 (A major target if momentum continues.)
R5: 42.84 (Another high-level resistance.)
Support Levels:
S1: 39.09
S2: 38.79
S3: 38.48
S4: 37.58 (Major support and invalidation level.)
3. Trade Plan & Strategy
A. Bullish Trade Idea (Momentum Play)
Entry: If the price holds above 41.25 (Dark Pool Level) and re-tests successfully.
Profit Targets:
42.58 (R2 Pivot Level) – Short-Term Target
44.28 (R3 Pivot Level) – Extended Target
44.84 (R5 Level) – Full Bullish Breakout Target
Stop Loss:
Below 40.49 (21 EMA & previous resistance now support)
Aggressive Stop: Below 41.25 (invalidates momentum)
Conservative Stop: Below 39.50 (breaks key Dark Pool level)
B. Bearish Reversal Play (If Price Fails at Resistance)
Entry: If the price rejects 42.58 and shows weakness.
Profit Targets:
41.25 (Dark Pool Level) – First Target
40.49 (21 EMA) – Extended Target
39.50 (BB SW Dark Pool Level) – Full Target
Stop Loss:
Above 42.84 (R5 Pivot Level)
4. Conclusion & Prediction
Primary Expectation: Bullish continuation if price holds above 41.25 with targets at 42.58 and 44.28.
Risk Consideration: A break below 41.25 and 39.50 would signal potential weakness.
Final Thought: Institutional buying (Dark Pool activity) at 39.50 and 41.25 suggests strong accumulation. If volume sustains, this move could push VZ towards 44+ in the coming weeks.