Anticipating Upside In Verizon
by Mike Paulenoff
July 7, 2024 • 2:06 PM EDT
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.
Login to join Mike and MPTrader members this week for their ongoing opportunistic fundamental and technical discussions about VZ and many other stocks, macro indices, sector ETFs, commodities, precious metals, and Bitcoin.
On August 27, 2024, I reviewed my near and intermediate-term technical setup on copper (gold, silver, oil) producer FCX (Freeport-McMoRan) for MPTrader members, writing:My attached Daily Chart shows the 30% correction from the May 2024 high to the August 2024 low, which my pattern work argues ended the retracement of the first upleg of a new bull phase in FCX that began at the 10/23/23 low of 33.08 and ended at the 5/20/24 high of 55.24. The August 2024 upmove from 39.08 (8/05/24) to 46.
On August 5, hours before its after-market earnings report, Mike Paulenoff posted a bullish alert on AI-juggernaut PLTR, writing:"Bottom Line Technically: As long as any forthcoming weakness on a closing basis remains above key support lodged between 19.60 and 21.50, PLTR has the right look of nearing the completion of the correction from its 7/08/24 high at 29.83, and the initiation of another advance that will extend the upside potential off of a two-year base-accumulation setup."The stock, trading at 23.
Three hours before the July Fed 31, 2024 (FOMC) meeting, I posted the following chart commentary about my technical setup work on 10-year Treasury YIELD and its actionable longer-term Treasury bond ETF, the TLT (20+ Year T-bond, ETF):Heading toward Fed Time, 10-year YIELD and TLT (20+ Year T-bond ETF) certainly appear to be anticipating lower interest rate news or innuendos from the FOMC statement (guidance) and Jay Powell in his post-meeting press conference.
On August 15, with XLV (Healthcare SPDR, ETF) approaching Mike Paulenoff's target zone (noted in an April 18th post), Mike responded to an MPTrader member's question about whether it was "time to sell and find something with more potential?" Mike wrote: "My short answer: no, it is not yet time to sell (although I will never dissuade anyone from taking profits and from ringing the cash register). My pattern and momentum work argue that upside potential extends from 156 to 161.
On August 6th, when UBER was trading 62, this is what Mike Paulenoff discussed with MPTrader members about the stock's technical setup in the immediate aftermath of the company's quarterly earnings report:"UBER... produced stellar earnings, albeit a bit light on next quarter's bookings. The stock is up 5.9% in pre-market trading within a near-term setup that argues yesterday's spike low at 53.25 ended a 35% correction off of the March high at 82.14.