2016-08-15 16:21:17

Verizon Communications Inc., #VZ [NYSE]
Technologies, Telecommunication, USA

Financial performance of the company:

Index – DJIA, S&P 500; Beta – 0.20;
Capitalization – 213.22 В; Return on asset – 7.40%;
Income - 17.88 B; Average volume – 17.79 М;
P/E - 11.95; ATR – 0.81.

Analytical review:

  • ​The company ranks the second on capitalization in the sector of “Telecommunication services” among the issuers traded in the American stock market;
  • At the end of July the company issued a report for Q2 of the fiscal year of 2016. Investors’ reaction on this report was fixed and company’s shares fell by over 4%. Currently the issues is traded at the support level of 53.50 USD;
  • According to the press-release, company’s revenue has dropped by 5.3% and amounted to 30.532 billiard USD against the forecast of 31.117 billion USD. At the same time, EPS (earnings per share) amounted to 0.94 USD, exceeding market expectations of 0.93 USD;
  • At the press-conference company’s management said that the revenue fell due to strong USD and high completion in the industry. Currently, Verizon Communications Inc. is focused on developing advanced divisions, such as: digital advertising and video streaming. Company’s management expects that recent purchase of AOL and Millennium Media, and the launch of video service “Go90” will help to generate high profit during this quarter;
  • Technical analysis shows probability of the correction in stocks of Verizon Communications Inc. On the chart with the timeframe Н1 a strong reversal pattern has been formed divergence of price and MACD histogram.

Summary:

  • Investors’ reaction on Q2 report was fixed. At the same time VZ is a successful company with high growth potential. Successful implementation of the investment projects will cause the rise in company’s stocks.
  • Therefore, it is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Verizon Communications Inc.

Key levels:
Support levels: 53.50 USD and 52.55 USD.
Resistance levels: 53.95 USD, 55.10 USD and 56.15.

Medium-term trading, Н1
Currently, the issuer is traded at support level of 53.50 USD. If the price maintains this level and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 54.60 USD, 55.50 USD and 56.50 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1


Short-term trading, М15
At the moment the issuer is traded between the local support and resistance levels of 53.45/53.85 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15