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Technology

Verizon Communications Inc. (VZ) Vs. AT&T Inc. (T): Technical Analysis

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The Country Caller examines both the stocks from technical analysis perspective

Verizon Communications (NYSE:VZ) and AT&T Inc. (NYSE:T) are two of the prominent names in the field of communications. Both the companies have been actively seeking out opportunities to widen their customer base and have launched a lot of offers in this regard. The New York based American broadband telecommunications company, Verizon Communications, has been doing well in recent times as investors have been bullish on its stock due to which stock prices have risen more than 5% in one month.

According to S&P Global Market Intelligence, Verizon’s stock has risen more than 21% in 2016, which makes it one of the best performing stock. The street, however, maintains a bearish stance as renowned brokerages such as Robert W. Baird and Deutsche Bank AG believe that the stock is currently overpriced. The consensus TP stands at $53.25, which implies a 4% downside.

AT&T Inc. is also up more than 5% MoM, which indicates investor confidence in the Texas based multinational. The company is committed to expand its presence in the IoT as it has recently launched a starter kit for developers. AT&T is also looking to expand beyond geographical boundaries as the mobile carrier has launched a program in Africa to support small start-ups. AT&T also does not have a bullish outlook according to the street, and offers a downside of 5% from current levels. While the street remains pessimistic about both the companies, the Country Caller examines both the companies from technical analysis perspective.

Verizon Communications currently stands in a Neutral position, though there is a potential for the bears. The 14-day RSI indicates that the stock is approaching the overbought region while other indicators such as oscillators also give the same notion. The current bearish trend appears to be gaining strength while the bulls are left with very little power.

Major price level for Verizon Communication is $55.83, a break above which may proceed to $56.19 and $56.78 levels, respectively. Major support resides at $55.24, a break below which may depress to $55.01 and $54.42 levels, respectively. We maintain a bearish stance on Verizon Communications for today.

AT&T Inc. currently also stands at a Neutral region while the bulls may take lead in today’s session. The 14-day RSI currently indicates a Neutral position while other indicators such as Stochastic and oscillators indicate that the stock is approaching an overbought situation. The current Neutral trend appears to be gaining momentum. The stock went ex-dividend on July 6, which may be the reason why prices went down.

Major price level for AT&T Inc. is $42.64, a break above which may advance to $42.8 and $43.17 levels, respectively. Major support resides at $42.27, a break above which may plummet to $42.06 and $41.69 levels, respectively. We maintain a Neutral stance on AT&T Inc.

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