VZ has Formed a Falling Wedge to its Blue Rising Megaphone Bottom
Verizon Communications Inc (NYSE:VZ) has formed a falling wedge to its light blue rising megaphone bottom. It’s tagging the bottom of that falling wedge today.
The move down can’t end on an exact tag of that wedge bottom. So VZ could pierce the wedge bottom a bit or form a megaphone bottom from here to tag the bottom of the light blue rising megaphone and then take off upwards past the July 2016 high.
Or VZ could break out the bottom of the falling wedge and through the bottom of the blue rising megaphone back to the red megaphone VWAP and reverse there for a trip back to the all-time high.
Neely Long-Term Set-Up Targets at Least the All-Time High
VZ has a Neely long-term set-up on the chart for a trip back to at least the all-time high. The set-up is the crash into the 2002 low, partial retrace of the crash with extended topping, then retest of the 2002 crash low. After that retest you’d expect to see a return to the all-time high and the price could go well beyond that.
If VZ retests the red megaphone VWAP, we’ll likely just be redrawing the blue rising megaphone. If VZ turns at or above the blue rising megaphone bottom, it will be putting in a rising megaphone extension within it. Either way, VZ should be setting off soon on a major move up.
A Breakout Through the Navy Megaphone VWAP Suggests a Substantial Higher High
VZ essentially bogged down at VWAP of its dot-com megaphone top (navy blue megaphone). The red megaphone is part of a major bottoming complex and is now legal for an upwards breakout targeting the 85-90 area or higher.
Potential Sornette Melt-Up Set-Up
If VZ makes it back to the red megaphone VWAP, it will also have formed a Sornette melt-up set-up. A breakout through the July 2016 high would suggest not only a huge move, but an extremely fast one to at least the target area.