Verizon (NYSE:VZ) and AT&T (NYSE:T) are two of the leading telecom stocks in the U.S. and both have recently been on the prowl for acquisitions. Verizon bought AOL and Yahoo! (NASDAQ:YHOO) over the past year trying to boost its online presence. AT&T, meanwhile, acquired Direct TV and Straight Path Communications (NYSE:STRP). Many analysts are expecting the two telecom giants to try and make other acquisitions in the near term, which should continue to keep the pressure on both telecom stocks.
Traders and investors should take note that Verizon's stock will have very good chart support around the $46.25 level — an area that was defended by institutional money in January and November of 2016. This area seems to be the line in the sand for Verizon and should be the next major level to buy the stock again.
AT&T's next major support will be around $38.40, which is an area where the stock broke out in November 2016 and should serve as an important trade level when tested again.
