Verizon has stepped onto the launch-pad! Let's GO!I posted about this setup last week, and so far it has played out exactly as I described. I wanted to give a little update based on todays price action. I will keep this short as I have provided the key points on the chart. But this is the 5-minute chart from todays session.
The stock appears to have stepped right onto the launch-pad and has put some major Option Strikes within striking distance before the week is out.
Tech stocks appear to be stepping back a bit (they were on average very overbought), and TLT (20 year treasury ETF) has staged a quiet rally in recent weeks.
I think there is some major strength appearing in the bond market, despite the US tax bill, I think yields will ultimately trend down, and defensives (especially VZ) will perform well. I have upgraded my 2025 target from $47.50 to $53 after digging through the numbers a bit more, and after considering more potential rate cuts later this year.
This will be VZ's 2nd test of the long-term bull-flag resistance, and it appears a breakout may be imminent. If the daily chart shows high volume and closes above that level this week, I think we're off to the races. Ignore this setup at your own peril :) I think it's a great opportunity, and regardless of what happens, this is a great stock to hold long-term. Currently paying a whopping 6.1%+ dividend.
A great addition for any dividend portfolio even at $53 (some analysts project higher, but I personally believe it may not go beyond that point until 2026 unless markets deteriorate or there is some other black swan event in 2025).
Good luck! Let me know if you have any questions. Cheers!
