HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Koos van der Merwe
So... is the stock a buy?
Position: Accumulate
Koos van der Merwe
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
PRINT THIS ARTICLE
ELLIOTT WAVE
A Call To Verizon
10/05/06 10:44:22 AMby Koos van der Merwe
So... is the stock a buy?
Position: Accumulate
| If you've never heard of Verizon (VZ), you must avoid looking at advertisements. Is the stock a buy? I think so... but not just yet. Let's look at Figure 1. |
|
| FIGURE 1: VERIZON, DAILY. VZ looks promising, but first, the RSI must be oversold. |
| Graphic provided by: AdvancedGET. |
| |
| Figure 1, the daily chart of VZ, shows a wave count suggesting there is a 74% probability Verizon is tracing the b-wave in an ABC–fourth-wave correction to possibly test the $35.44 or $34.64 level. |
| Advanced GET is also suggesting this may not be a completed wave 3 and indicates a probable higher target of $40.89. Whatever the eventual wave count, the standard relative strength index (RSI) is looking for a correction and may test the lower trendline rather than either of the two targets suggested. Chances are when it does so, the program may recalculate its suggestive wave count. |
| In the chart, I have also shown a JM internal band (light blue lines). The JM internal band is a very conservative strategy based on two 15-period moving averages offset by, in this instance, 2%. A move above the upper band suggests a buy signal, and below the lower band, a sell signal. Normal stop-losses should be used to your preference. At the moment, VZ is still in a buy mode, and long-term investors would add to their position on the correction rather than sell outright. |
| Verizon is a share on my watch list, and I shall buy it once the RSI is oversold, possibly at the $34–35 level. |
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
| Address: | 3256 West 24th Ave |
| Vancouver, BC | |
| Phone # for sales: | 6042634214 |
| E-mail address: | petroosp@gmail.com |
Click here for more information about our publications!
Comments
Date: 10/06/06Rank: 2Comment:
|
Request Information From Our Sponsors
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog