Verizon (VZ) - Get Verizon Communications Inc. Report will close out this week on a very negative note. Yesterday, the stock gaped lower on the open following a disappointing earnings report but managed to stabilize after testing the February lows. Today, the stock has wiped out Thursday's rebound with authority and is likely headed lower in the near term.

Back in January, Verizon suffered a very damaging sell off following its fourth-quarter earnings report. The stock opened with a huge downside gap that dropped it well below the 200-day moving average. Three weeks later, Verizon bottomed just below $48 as a consolidation pattern began. This pattern had a very heavy look to it due to a declining 200-day overhead along with three straight lower monthly highs. The break below the lower band of this consolidation pattern indicates a fresh down leg could be on the way.

In the near term, Verizon investors should remain patient before buying weakness until key support is tested. The stock left behind a major low just after the election. If the stock can regain its footing near the $46 area, a very low-risk entry opportunity will develop. Until then, Verizon may continue to trade heavy.

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The author of this article is long VZ.