NEW YORK (TheStreet) -- Investors who have studied the daily technical chart of Verizon (VZ) - Get Report  know the stock has been moving sideways to lower since setting its all-time high in April 2013. Weakness to the down side accelerated with a price gap below its 200-day simple moving average on June 4.

As a result, Verizon shares were vulnerable when China's Shanghai Composite began its plunge in mid-June. As a result, Verizon will need better-than-expected earnings to claw its way back above the "death cross" negative technical indicator that was confirmed on July 7.

Verizon is the only telecom component of the Dow Jones Industrial Average I:DJI . The stock, at around $44.75, is down 4.3% for the year to date while the average is down 3.4%. Analysts expect Verizon to report earnings of $1.02 a share before the opening bell on Tuesday.

Some say Verizon should be bought given a dividend yield of 5.1%. This has been a theme since the beginning of the year as the stock was one of the "Dogs of the Dow." Analysts from Morgan Stanley say Verizon is one of the wireless carriers set to benefit from subscription growth from the iPhone. 

Here's a table of the 15 Dow stocks hurt most by the "Black Monday" flash crash of Aug. 24. Verizon suffered a 17.4% plunge in its stock price.

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Here's the daily chart for Verizon.


Courtesy of MetaStock Xenith

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The daily chart shows that Verizon down 16.8% below its multiyear high of $53.72 set on April 29, 2013.

The stock confirmed a "death cross" on July 6, making it vulnerable to a flash crash. The stock began to gap lower on Aug. 21 and gapped lower on "Black Monday" trading as low as $38.06 putting the stock briefing into bear market territory down 29.2%.

The stock rebounded but failed at its 50-day simple moving average of $46.57 on Sept. 15. Since then the stock has been trading mostly between its 38.2% Fibonacci Retracement of the 2015 range at $42.94 and its 50% retracement of $44.46, closing above that level on Thursday.

The "death cross" remains in play with the stock below its 50-day and 200-day simple moving averages of $45.30 and $47.56, respectively. The 61.8% retracement is a resistance at $45.97.

Here's the weekly chart for Verizon.


Courtesy of MetaStock Xenith

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The weekly chart for Verizon is neutral with the stock below its key weekly moving average of $44.82. The stock is also below its 200-week simple moving average at $46.62, which lines up with the 23.6% Fibonacci Retracement of the bull market off the low in Oct. 2008. This key level is $46.57.

The 38.2% retracement is a support at $41.80 and the 50% retracement of $37.94 held at the Aug. 24 low.

The weekly momentum reading is projected to inch up to 57.22 this week up from 57.20 on Oct. 9.

Momentum scales from 00.00 to 100.00 with a reading below 20.00 oversold and a reading above 80.00 overbought. This study is shown in red along the bottom of the chart.

Investors looking to buy Verizon should place a good till canceled limit order to purchase the stock if it drops to the 38.2% retracement of $41.80.

Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $46.50, which is a key level on technical charts until the end of 2015.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.