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Verizon Communications Inc. Market Update

1/24/2023 3:01 PM

Shares of Verizon Communications Inc., one of the largest American telecommunications companies, resumed a decline in the long-term downward trend at the beginning of this year after several months of corrective growth, and currently the price is around the 39.60 mark.

Investors are waiting for the release of the company's financial statements for Q4, which should take place today. It is likely that against the background of an increase in the number of users of wireless tariff plans in connection with the release of a new iPhone model, the issuer will report an increase in quarterly revenue. According to forecasts, it will amount to 35.14B dollars, which is more than theQ3 figure of 34.24B dollars, while earnings per share may be at 1.19 dollars, which is slightly lower than the previous 1.32 dollars. The implementation of forecasts may support the issuer's quotes.

In general, the prospects for Verizon Communications Inc. this year look ambiguous. On the one hand, the company is actively expanding its fiber-optic network to support 4G and 5G wireless communications, which allows it to attract new customers. At the same time, profit growth will be constrained by the overall difficult situation in the American economy, the pressure of high prices on household demand, as well as a serious increase in operating costs, in particular, for advertising and discount program.    

Now the price has broken below the middle line of the Bollinger Bands, and with a further breakdown of the level of 39.06 (Murray level [5/8]), the decline will be able to continue to 37.50 (Murray level [0/8]), 35.94 (Murray level [-1/8]), 34.38 (Murray level [-2/8]). The key for the "bulls" is the level of 40.62 (Murray level [2/8]), its breakout will give the prospect of further growth to the area of 42.19 (Murray level [3/8]), 43.75 (Murray level [4/8]).

Technical indicators do not give a single signal: the Bollinger Bands are directed upwards, the Stochastic is also reversing there from the oversold zone, but the MACD histogram is shrinking in the positive zone.

Resistance levels: 40.62, 42.19, 43.75. | Support levels: 39.06, 37.50, 35.94, 34.38.

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