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Verizon Could Be Calling You Soon From Lower Price Levels

In another of his "Executive Decision" segments during Mad Money Wednesday night, Jim Cramer checked in Hans Vestberg, chairman and CEO of Verizon Communications (VZ) , the telecom provider with an attractive yield.

Vestberg said communications are essential which is why Verizon chose to accelerate their investments into 5G. He said there are a small percentage of customers taking advantage of their Keep America Connected program, but so far they have not seen sizable disruptions.

Vestberg said Verizon is building the fastest 5G network which is up to 20 times faster than their 4G LTE and will support transactions, video communications and augmented reality services, Vestberg said.

Let's call up a few charts.

In this daily bar chart of VZ, below, we can see that prices "rolled over" from September to January and then started that all too familiar decline into a March low. Prices bottomed late in March or about a week behind the technology leaders. VZ rebounded to the upside but has rolled over again during April.

Prices are back below the declining 50-day moving average line. The daily On-Balance-Volume (OBV) line has been in a downtrend from early February and tells us that sellers of VZ have been more aggressive even during the temporary price recovery.

The Moving Average Convergence Divergence (MACD) crossed above the zero line last month for a buy signal but it has since slipped back below the line for a new sell signal.

Verizon Could Be Calling You Soon From Lower Price Levels

In this weekly bar chart of VZ, below, we can see a bearish setup. Prices are below the declining 40-week moving average line.

The weekly OBV line has been pointed down for about six weeks. The MACD oscillator is in a bearish configuration below the zero line.

Verizon Could Be Calling You Soon From Lower Price Levels

In this first Point and Figure chart of VZ, below, we used daily price data but plotted percentage swings instead of even dollar increments. Here the chart is indicating a nearby price target around $52.

Verizon Could Be Calling You Soon From Lower Price Levels

In this second Point and Figure chart of VZ, below, we used a traditional even dollar increment for plotting. Here the chart covers a lot more price history and a potential upside price target of $76 is shown. Big difference.

Verizon Could Be Calling You Soon From Lower Price Levels

Bottom line strategy: Three of the four charts we present above are bearish. Let's stand aside on VZ for a couple of weeks to see how things develop.