VZ in the buy area
Hi Traders
Verizon Communications Inc (VZ) is in an uptrend since October ’23. The price level broke the resistance and seems to confirm the fact that the old resistance level serves as a support level right now. I suspect the stock to make a new higher high as long as the uptrend doesn’t get invalidated. In other words, if the stock price doesn’t fall below it’s support range between $38.8 and $41. We can, thus, see this range as the buy area.
Also in terms of fundamental analysis, there is something to say about this stock. VZ is a company that benefits a lot from the current TCJA law in the US. A law that was signed in 2017 and that reduces the average effective tax rate for large corporations. It’s a law that has been critized for disproportionately benefiting higher-income corporations, like VZ. Many key elements of the TCJA are set te expire in 2025 and whether these elements will be extended depends on who will become US’s new president.
Trump wants to extend the TCJA elements that are so beneficial for higher-income corporations. Harris, on the other hand, doesn’t want this.
Therefore, VZ’s future profits are expected to be higher if Trump wins the election because, in that case, they will be able to benefit more from the current tax benefits.
To conclude, I would wait for the election results to decide whether to enter the trade. If Trump wins, I forecast that the stock’s trend will be even bullisher. In that case, I would enter the trade in the buy area, target a price level of $47.6 and put a stop-loss at $37.8.
Verizon Communications Inc (VZ) is in an uptrend since October ’23. The price level broke the resistance and seems to confirm the fact that the old resistance level serves as a support level right now. I suspect the stock to make a new higher high as long as the uptrend doesn’t get invalidated. In other words, if the stock price doesn’t fall below it’s support range between $38.8 and $41. We can, thus, see this range as the buy area.
Also in terms of fundamental analysis, there is something to say about this stock. VZ is a company that benefits a lot from the current TCJA law in the US. A law that was signed in 2017 and that reduces the average effective tax rate for large corporations. It’s a law that has been critized for disproportionately benefiting higher-income corporations, like VZ. Many key elements of the TCJA are set te expire in 2025 and whether these elements will be extended depends on who will become US’s new president.
Trump wants to extend the TCJA elements that are so beneficial for higher-income corporations. Harris, on the other hand, doesn’t want this.
Therefore, VZ’s future profits are expected to be higher if Trump wins the election because, in that case, they will be able to benefit more from the current tax benefits.
To conclude, I would wait for the election results to decide whether to enter the trade. If Trump wins, I forecast that the stock’s trend will be even bullisher. In that case, I would enter the trade in the buy area, target a price level of $47.6 and put a stop-loss at $37.8.
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