The biggest name on this list is Verizon ( VZ). The $150 billion telecom stock is one of two standard bearers in the wireless and fixed line phone business -- but I'm not here to trumpet Verizon's successes today. Shares look "toppy" in the short-term.
Sure, Verizon has posted some strong performance this year. Shares of the carrier are up more than 20% since the calendar flipped over to 2013. But now, a head and shoulders pattern points to a top in the massive telco. The head and shoulders is a price pattern that indicates exhaustion among buyers. The pattern is formed by two swing highs that top out around the same level (the shoulders), separated by a bigger peak called the head; the sell signal comes on the breakdown below the pattern's "neckline" level, currently right below $52.Momentum, measured by 14-day RSI, adds some extra downside confidence to this trade. The long-term uptrend in momentum broke in yesterday's session. To be clear, this is a short-term setup; even so, longer-term investors looking to build a position in VZ would be wise to wait for it to find a new lower support level first.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV