Dow Stock's Bull Signal Has Never Been Wrong

By Lillian Currens / May 09, 2019 / www.schaeffersresearch.com / Article Link

Dollar_HandsVerizon stock just pulled back to a historically bullish indicator on the charts

The shares of blue-chip name Verizon Communications Inc (NYSE:VZ) have taken a breather since nearly taking out theirall-time high in late March, trading up to $61.58. The telecom concern has been bouncing atop the $56 region of late, and VZ just pulled back to a long-term bull signal on the charts that could send the equity higher, if history is any indicator.

Specifically, Verizon just came within one standard deviation of its 10-month moving average after a lengthy period atop the trendline. According to Schaeffer's Senior Qualitative Analyst Rocky White, this signal has flashed seven times in the past fifteen years. The stock ended higher after each signal, with an average gain of nearly 5%. From VZ's current perch of $56.34, a similar move would put the security right near the $59 area, a region it hasn't touched since its late-March spike.

VZ Chart Apr 9

The door is wide open for upgrades too. Analysts have been skeptical on Verizon of late, with 10 calling it a tepid "hold," and only five saying "strong buy." Plus, the consensus 12-month target price is at a slim 5.9% premium to current levels. Should the stock see some positive price action on the charts, price-target hikes could put even more wind at the equity's back.

Options traders are already awaiting VZ's next big bounce, however. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Verizon sports a 50-day call/put volume ratio of 3.47. This ratio sits in the 98th percentile of its annual range, hinting at a much larger-than-usual appetite for bullish bets of late.

Despite this, option premiums are still cheap. The equity's Schaeffer's Volatility Index (SVI) of 17% stands in the 22nd percentile of its annual range, implying that near-term options traders are pricing in relatively low volatility expectations.

Recent News

Platinum, palladium, copper gain on green China, supply constraints

September 29, 2025 / www.canadianminingreport.com

Gold stocks continue to soar as markets stumble

September 29, 2025 / www.canadianminingreport.com

Gold stocks again reach new highs

September 22, 2025 / www.canadianminingreport.com

Silver outpaces major metals in recent months

September 22, 2025 / www.canadianminingreport.com

Another 'Bubble Check' for the gold sector

September 08, 2025 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok