Current trend

Shares of Verizon Communications Inc., one of the largest American telecommunications companies, are moving in a correction trend at 40.00.

Three additional communication nodes were installed in Fresno, providing a 4G and 5G network coverage area. Previously, the infrastructure in the region was characterized by low bandwidth, which did not allow full capabilities to be used.

Yesterday, TD Cowen experts maintained the issuer rating at the Buy level, renewing the target price to 51.0 dollars. The decision was made after the recently concluded meeting between management and investors, where the management confirmed that Verizon Communications Inc. is ready to participate in transactions on Generation AI fiber-optic networks, although their deployment will not have a significant impact on the company’s metrics. Also, the plan to complete the deployment of C-band spectrum networks, key for servicing rural residents, by the end of 2025 was confirmed.

On August 1, investors received quarterly dividends of 0.6650 dollars, and the final yield was a high 6.44% for the quarter. The payment was the last at the current annual rate, and the next one will be higher, as there will be an annual indexation of 2.0%.

Support and resistance

On the daily chart, the trading instrument stays within the sideways channel of 43.00–38.50.

Technical indicators do not give a clear signal: the EMA fluctuation range on the Alligator indicator is narrowing, and the AO histogram is forming bars with a downward trend below the transition level.

Resistance levels: 41.00, 43.00.

Support levels: 40.00, 38.50.

Trading tips

Long positions may be opened after the price rises and consolidates above 41.00, with the target at 43.00. Stop loss is 40.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 40.00, with the target at 38.50 and stop loss 41.00.