Verizon Communications Inc. stock (NYSE:VZ) is a good example of what we call a choppy market. Since the recent bearish trend ended in 2021, price has been choppy and directionless.Currently, price is situated within the upper and lower Trendlines, while the RSI period 14 is situated slightly below the level 50. All these show that there is hardly a direction in the market. Things are rough now.
Nonetheless, a clear directional movement is expected once price breaks out
above the upper Trendline and the RSI goes above the level 50 (generating a
bullish signal), or when price breaks out below the lower Trendline and the RSI
period 14 goes below the level 50 (generating a bearish signal).
Looking more closely at the chart, VZ has a higher probability of going higher than going lower. Until then, it is advisable to do nothing in this market.
Market Analyst, Trading Signals Provider and Coach
Teach Yourself Technical Analysis: Technical analysis
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