Bull & Bear: Verizon Communications

Shares of Verizon Communications VZ are trading lower on the session by 1.63%, at $36.33. With shares recently falling below the 50-day moving averages, you have to wonder where shares could head next… Bulls: Bulls will note that Verizon Communications has been in an uptrend for the past year, one where any significant trade down through the 50-day has produced a snap-back rally to new highs. If the pattern continues, Bulls would see VZ heading above $39.00 in the next few weeks. Bulls will also note that the 200-day moving average remains sharply up-trending and that shares are not overbought. A bullish trader could buy the August $37/39 call spread for a net debit of $0.50. Bears: Bears will note that shares have recently entered into a down-trend, which traders are respecting. Verizon Communications has also recently traded down through the 20-day and 50-day moving averages, forcing those averages lower. In previous pullbacks, the 50-day moving averages never sloped downward. Bears will also note that $36.00 is a major support level that, if broken, could send shares to $34.00, then $32.00. A bearish trader could buy the August $36/34/32 put tree for a net debit of $0.45. Verizon Communications Inc. is a holding company. Verizon through its subsidiaries is a provider of communications services. The company has two segments: Domestic Wireless and Wireline. Its Domestic Wireless' communications products and services include wireless voice and data services and equipment sales, which are provided to consumer, business and government customers across the United States. Wireline's communications products and services include voice, Internet access, broadband video and data, Internet protocol (IP) network services, network access, long distance and other services.