Velez Trade - VZ

Team Trading - Stock Pick of the Week - December 21st 2009 - oldfox@gmail.com - Gmail:

"Today's play is a possible long swing trade, from the daily charts, on VERIZON COMMUNICATIONS INC. (VZ).

Sector: Technology – Telecom Services - Domestic

Next Earnings Date: January 26th

The Technical Setup: VCM buy setup (VBS). VZ set a bottom in late October (1) and quickly changed the trend to an uptrend, on a mid November breakout. Since the change of trend, VZ has been in what we refer to as a “Powertrend”. The price has held a strong uptrend that hasn’t returned to the 20 period moving average, until now. Powertrends are great, but often are hard to get entries, because of the constant aggressive buying. Since the high last week, (3), VZ is now offering the first daily VBS since the new uptrend began. Two days ago VZ formed a bottoming tail at the 20ma and in the area of minor support.

The Play: Traders can buy VZ as a swing trade over 33.12, with a protective stop under 32.28. We will look for targets of 34.94 and 39.44."

OTT B 100 vz fill @ $33.10 s/l 32.28 t1 34.94 t2 39.44