NEW YORK, NY – Verizon Communications Inc. (NYSE: VZ) ended Thursday’s trading session with a fractional gain, but the nearly flat close conceals a concerning intraday trend that could see the stock face headwinds on Monday. Shares closed at
0.030 (0.072%).
The day began on a high note for the telecom giant, with shares rallying from an open of $41.81 to a session high of $42.10 in the morning. However, that optimism proved to be short-lived. Starting around noon, sellers took firm control, pushing the stock into a sustained downtrend that erased all of the day’s gains and sent it to a low of $41.65.
While the stock managed to close slightly off its lows and saw a minor bump to $41.80 in after-hours trading, the overall price action tells a story of fading strength.
What This Means for Monday
Despite closing in the green, the technical picture suggests the market is likely to go DOWN on Monday. Here’s why investors should be cautious:
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A Significant Fade from the Highs: The most prominent feature on the chart is the failure to hold the morning rally. When a stock surges to a new high only to see those gains completely evaporate, it’s a powerful sign that sellers have overwhelmed buyers and are in control of the trend.
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Weak Closing Position: Verizon closed much closer to its daily low (
42.10). This indicates that the bears won the battle into the close, and that negative momentum is likely to persist into the next trading session.
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Closing Below the Opening Price: The stock opened at $41.81 but closed lower at $41.70. This is a classic bearish signal, suggesting that despite intraday volatility, the net result of the session was negative.
The positive after-hours trading provides a small counterpoint, but it is not enough to erase the bearish sentiment established by the powerful midday reversal. On Monday, traders will be closely watching the daily low of $41.65. A break below this level could confirm the bearish trend and signal further downside for the stock.
