Telecom Giant Shows Breakout Pattern

Hey gang,

Despite the massive rally we’ve had over the past two weeks, volatility isn’t going anywhere, and we could see some fireworks after today’s FOMC meeting.

But here’s the deal—the market’s still choppy, and the key to thriving in this environment is sticking to high-quality setups.

And today, I’ve got one for you that’s checking all the boxes. The stock? Verizon Communications (NYSE: VZ).

VZ is trading just off its 52-week highs of $47.35, and it’s got everything I love in a setup:

  • A daily squeeze coiling up like a spring.
  • Stacked EMAs on the daily and weekly charts.
  • Relative strength that’s crushing the major indices—VZ is up nearly 10% YTD.
  • And it’s a recent earnings winnerwith strong results backing the momentum.

This one looks primed to make a run back to its highs—and possibly beyond. Let’s break it all down.

The Daily Squeeze: A Spring-Loaded Setup

What’s a squeeze?

Think of it like a spring winding tighter and tighter. When Bollinger Bands squeeze inside the Keltner Channels, volatility drops, and the stock starts consolidating. This coiling process builds up energy—like a spring loaded to pop.

And when that squeeze fires?

Boom—you get a big move.

For Verizon, we’ve got a daily squeeze in play, and the stock is holding up near its highs.

This is the kind of setup I love to see—a stock that’s resting, gathering energy, and gearing up for its next leg higher. Add in the strong fundamentals and earnings momentum, and I think this squeeze is building up for a breakout.

Stacked EMAs: Buyers Are in Control

What do I mean by stacked EMAs? Simply put, it’s when the shorter-term moving averages (like the 8-day and 21-day) line up above the longer-term ones (like the 50-day and 200-day).

This alignment tells me two things:

  1. The trend is bullish.
  2. Buyers are in control.

When you see stacked EMAs, it’s a clear signal that the stock is trending higher across multiple timeframes. A

And here’s the kicker—Verizon’s stacked EMAs are showing up on both the daily and weekly charts, which gives me even more confidence in the strength of this trend.

Relative Strength: Outperforming the Market

Why does relative strength matter? Because it shows where the big money is flowing. When a stock is outperforming the broader market—like Verizon, which is up nearly 10% YTD—it’s a sign that institutions are stepping in and buying.

While the S&P 500 and Nasdaq have been choppy, Verizon has been a standout. The relative strength line is rising, confirming that VZ is beating the broader market. This is exactly what I want to see—it’s how you know you’re riding the winners instead of wasting time on the laggards.

Earnings Winner: Momentum Backed by Results

Verizon isn’t just a technical setup—it’s got strong fundamentals backing it up. The recent earnings report was solid:

  • EPS Beat: $1.19 per share, beating estimates by $0.04.
  • Revenue Beat: $33.5 billion, beating by $220 million.

This kind of earnings momentum often leads to follow-through in the stock price. Combine that with the daily squeeze, stacked EMAs, and relative strength, and it’s no surprise VZ is set up for a run at its 52-week highs of $47.35—and potentially beyond.

Your Action Plan

Here’s why I’m pumped about Verizon:

  • The daily squeeze is building energy for a breakout.
  • Stacked EMAs confirm a strong, bullish trend.
  • Relative strength shows that it’s outperforming the broader market.
  • It’s a recent earnings winner, with strong fundamentals supporting the move.

This is a clean, high-probability setup—exactly the kind of play I like to focus on when the market’s still volatile.

Now, If you’re looking for more setups like this, don’t miss my LIVE session today, May 7th, at 2 PM EST, where I’ll be joined by special guest JC Parets.

Together we’ll walk you through the tools you need to dominate in this volatile market, including:

  • How to use RSI to spot real momentum and avoid fakeouts.
  • Mastering moving averages to stay on the right side of the trend.
  • Using Fibonacci zones to nail breakout targets.

🗓️ When: (Today) Wednesday, May 7th @ 2 PM EST

📍 Where: Monument Traders LIVE chat room

🔗 RSVP HERE

Stay nimble, stay focused—and I’ll see you this afternoon!

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