VZ stock | EMA50 | Bullish trend | $42 to watch

 

Verizon

Verizon (VZ) stock dropped almost 5% after the company’s early morning earnings results.

The company’s earnings results were inline with Wall Street’s expectations, a common theme for the communications company.

Each quarter of the last two years marked earnings results that fell within $0.04 of analyst expectations.  This quarter’s $0.01 was better than last quarter’s earnings match.

Similarly, Verizon’s revenue was just slightly better than expected.  Revenue for the quarter grew 0.9% compared to last year’s numbers.

All in all, the results are best described as bland.

Not so surprisingly, the reaction to Verizon’s results is relatively normal.

Over the last two years Verizon shares have moved +/- 6% on average after its earnings report.

Last quarter, the stock dropped 6.01% after the report.  Shares quickly recovered that drop to continue their intermediate-term bullish trend.  That trend was supported strongly by the stock’s 50-day moving average.

Today, Verizon broke below that trendline again.

Investors should watch for support at $42 to signal the continuation of Verizon’s bullish trend.