Verizon began to pullback in late March.  Four weeks later the stock had dropped 8% and was testing the 200 day moving average.  VZ has spent the last three weeks in a tight range just above this key indicator.  With back to back monthly lows in place near major support the stock is setting up well.

The 200 day has been very solid since the December flush.  The only monthly low since then that hasn’t come in contact with the upward sloping 200D is March.  VZ has not closed on a weekly basis below the 200D since last June. 

We consider VZ a low risk buy near current levels.  On the downside, a close back below $55.00 would clearly violate the 200D, as well as both the April and May lows, sending a clear warning sign.  On the upside, a close above $58.00 would be a key hurdle.

At time of publication we are long VZ in most managed accounts.