Shares ofVerizon (VZ) - Get Report have been trading in a short-term price channel within a longer-term three-year channel. They are currently breaking above interior channel resistance and poised to make a run at the primary channel resistance level. A break from this larger pattern projects a 12% move higher in the stock.

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The weekly chart shows the stock moving in a lateral channel for the last three years between roughly $48.50 resistance and $41.50 support. It has been consolidating in an interior zone of resistance under $47 for the last eight months and is currently above the rising green dashed linear regression line. This line is the best-fit straight line of closing price within the long-term channel, and it reflects a rising trend.

The relative strength index is above its 21-period average and center line, and moving average convergence/divergence made a bullish crossover in November last year and now is crossing above its center line. These are indications of improving price momentum. Accumulation/distribution is trending flat with its 21-period average, but the money flow index, a relative strength measure of money flow, is tracking above its signal and center lines.

Last week's candle engulfed several weeks of price action and closed near weekly interior resistance. A continuation of this momentum could take the stock back up to retest longer-term channel resistance and a potential breakout from the pattern.

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On the daily timeframe, the stock has been trading in a smaller fractal version of the larger channel pattern, with top-end resistance in the $46.50 area and channel bottom support in the $43.50 area. The relative strength index is crossing above its 21-period average and center line, and moving average convergence/divergence is making a bullish crossover right on its center line.

There has been a surge in overall volume since it last tested this channel bottom last month, along with positive money flow. Accumulation/distribution jumped and Chaikin money flow, a 21-period average the A/D line is well into positive territory. This reinforces the positive price momentum and is a indication that the stock is under accumulation.

Verizon closed above daily interior channel resistance on Friday and above its upper Bollinger band. The stock is a long candidate at this current level. If long-term channel resistance is taken out, the depth of that pattern projects up to the $54 area or an approximate 12% gain in the stock price.

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