Can the Verizon Communication Stock Price Hold the $31 Level?

• Verizon Communication’s stock price is trading very close to its 52-week low.
• VZ stock price is trading below the 50-day and 100-day Exponential Moving Averages.
• The net debt of the company is rising to some extreme levels.

The market capital of the VZ stock – $136.253 Billion

The current market price of the VZ stock – $32.41 

Verizon Communication Stock Overview

In the previous trading session, the VZ stock has declined by a mere $0.14 or 0.43%. The stock is currently trading at 2017’s level which itself means the stock performance is poor. The price has declined by over 2% in a week, 7% in a month, and 17% in a year. This statistic indicates that the price is under the strong control of bears and they are dominating the price on every level.

The reason for the downfall of the stock could be the rising net debt of the company. This company has been submerged in a huge debt of $172.38 Billion. If we examine the debt-to-equity ratio, it is standing at 1.87 which is not at all a good sign for any company. 

The company’s revenue has been almost flat for 6 years. In 2016 the revenue of the company was $125.98 Billion, which has increased to just $136.84 billion in 2022. However, the net income of the company has risen from $13.13 Billion in 2016 to $21.26 Billion in 2022. The company paid a dividend of $2.58 in 2022 with a dividend yield of 6.56%, which is outstanding.

Technical Analysis of Verizon Communication Stock

If we observe the chart, the stock is in a strong downtrend. The price is following the downward-sloping trendline nicely and faced a rejection for more than 4 times till now. The VZ stock price is trading below the 50-day and 100-day Exponential Moving Averages, which is a bearish sign. The slope of the EMA is downward, indicating strong selling happened in the past. The EMAs are currently present at $33.71 and $34.43 levels.

The price can face some rejection from the EMAs, along with that it can face rejection from the resistance level of $37.16. The other 2 resistances are present at the level of $39.17 and $40.77 and are marked as Resistance 2 and Resistance 3 respectively. If we consider the support level for the price is present near the level of $32.22 – $31.20 and $29.02-$28.20. The Relative Strength Index is currently below 50 and is inching towards the oversold trajectory. It shows that the price can halt the fall in the near time. 

Conclusion

The price is currently in a strong downtrend and is trading near the support level. If it breaks the support level, it can fall to the $29.02 level. Suppose the price rises from this level, it can face some rejection around the $34.5 level where the trendline is present.

Technical level

Resistance – $37.16 and $39.17

Support – $32.22 and $29.02

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.