Verizon Communication Inc. is one of the 30 companies that are forming the Dow Jones Industrial Average. In 1983 was born Bell Atlantic which after 17 years of changes acquired former independent phone company GTE and became as it is known today Verizon (NYSE: VZ, NASDAQ:VZ). The company became a provider of communications, information, services to consumers business and governmental agencies. It operates in two primary segments: Verizon Wireless and Wireline.
From the beginning of this year the stocks have gained 11%, rallying from $44 per share to the current level of $49. Here it entered in a harmonic pattern PRZ and bearish signals started to appear. The volume dropped on the last run and the 28 periods RSI made a negative divergence right at the 70 level. This throwback could be confirmed by the price action if the price will fall back to 48.30, a slip under this local support might trigger a drop back to 46.80/47.00 zone.
If the price will continue the up move and will have a daily close over 49.81 this setup will be invalidated and the uptrend might continue over 50$ per share.