This week's selection for our Top Call -- VZ (Verizon Communications) -- is less a function of its recent success and more a reflection of Mike's technical setup work that projects gains in the days and weeks ahead.
On June 17, one of our MPTrader members (FJB) alerted us to his fundamental work on VZ. After seeing his positive comments, Mike Paulenoff posted the following technical interpretation of the pattern setup:
"... somewhere above 36.00, VZ should reverse into another upleg within its budding bull phase, and coupled with the juicy dividend, FJB is on to something that could be a rewarding name in any portfolio, but especially a portfolio that you want to reinforce with cash-generating companies when the relentless clamor for Info Technology names takes a breather... Last is 39.24... (6/17/24)..."
Then on July 1st, Mike commented:
"This AM, Goldman Sachs initiated VZ coverage with a Buy Rating, and a target price of $50. At the moment, VZ is up 0.8% at 41.60, but the GS research "endorsement" has not powered the name above its dominant down trendline off of the December 2020 high at 61.95 that cuts across the price axis in the vicinity of 42.50 this week. That said, however, the technical setup-- i.e., the positive juxtaposition of the up-sloping 200 Week MA, and the positive upturning Weekly Momentum gauges suggest strongly that as long as 39.00 contains any forthcoming weakness on a closing basis, VZ is a keeper, especially for anyone who feels the need to adopt a more defensive posture during the potential uncertainties likely approaching during the upcoming weeks. Finally, don't forget the VZ dividend pays 6.5%!.. Last is 41.61... "
This past Friday July 5, VZ closed at 41.27, a full 5% above Mike's June 17 post to our members, but if his work proves accurate, there is much more upside ahead, and for this reason VZ is high on our radar screen during Q3, 2024.
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