BZ Chart Of The Day: Is The Verizon Death Spiral Finally Ending?
Shares of Verizon Communications Inc. (NYSE:VZ) have been in a complete meltdown. In just a few days, its price dropped from $54 to $51 per share.
But now there’s a chance the selling is over and share may have found a bottom.
If they do rally, there’s a good chance they run into resistance around $54. This level was support and support levels can convert into resistance.
It’s because of buyer’s remorse.
See also: BZ Chart Of The Day: AT&T's Bloodbath
Investors who bought Verizon's stock at $54 now regret their decision to do so because the price is lower. A number of these remorseful buyers decide to sell, but they don’t want to take a loss.
As a result, they will be placing their sell orders at $54. If there are enough of these orders, it will form resistance.
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Photo: Anthony92931, via Wikimedia Commons
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