It’s certainly been an eventful week for Verizon Communications Inc. VZ 1%. The company kicked off the week by announcing that it has agreed to buy Yahoo! Inc. YHOO 0.86% for $4.8 billion. Verizon then reported mixed Q2 results, including an earnings beat and a small revenue miss.
The stock has been one of the hottest large caps in the market in 2016, delivering a 19.1 percent year-to-date gain on top of its generous 4.1 percent dividend. However, after hitting a new 15-year high of $56.38 at the beginning of the month, Verizon has drifted mostly sideways in recent weeks, while the S&P 500 went on to hit new highs.
On Wednesday, the stock briefly dipped as low as $54.44 before quickly rebounding to slightly above $55. Verizon has spent most of July in a narrow trading range between $55 and $56. Wednesday’s dip could be a sign that there are buyers below this range, but any attempts to break out to new highs have been met with selling pressure as well.
Traders should watch…
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