We present a medium-term investment review of Verizon Communications Inc., one of the largest American telecommunications companies.

The corporation’s positions in the private and corporate communications services market remain stable despite attempts by AT&T Inc. and T-Mobile US Inc. to maintain leadership. In particular, management announced a possible deal to acquire Internet provider Frontier Communications Parent Inc. Although analytical companies Institutional Shareholders Services Inc. and Glass, Lewis & Co. actively urged investors to oppose it due to low purchase price, the shareholder vote last week approved the contract, which will cost Verizon Communications Inc. 9.6B dollars, and the average payment price per share will be 38.50 dollars. After the process allocated for 18 months is completed, the issuer will receive access to all technologies and a customer core, becoming the undisputed leader in the fiber-optic networks segment. The stable position is confirmed by the financial results of the previous quarter, which reflected a positive trend in other areas of the business. Thus, the fixed wireless access (FWA) subscriber portfolio increased by 378.0K due to the deployment of the C-band network. The year’s dividends are approaching 25.00%, and the last quarterly payment took place on November 1, when investors received 0.68 dollars per share, equivalent to a quarterly yield of 6.14%.

In addition to the underlying fundamental factors, technical indicators also signal in favor of continued growth of the trading instrument. On the weekly chart, the price is moving within the correction, preparing to leave the limits of the long-term reversal pattern Head and shoulders with the Neckline at 55.00.

Within the ascending wave, the quotes have almost reached the intermediate correction level of 50.0% Fibonacci 45.80, which will be an actual confirmation of the transition to the stage of a full-fledged correction.

Let’s consider the key levels on the daily chart.

As can be seen from the chart, the price is in an ascending channel with dynamic boundaries of 46.00–40.00, and an additional factor in favor of its increase will be an exit from the range with consolidation above the resistance line, almost coinciding with the intermediate correction level of 50.0% Fibonacci 45.80. After reaching the high of March 2, 2021, at 55.00, it is better to take profit on open buy positions. However, in case of a decline to the low of November 7 at 40.00, the ascending scenario will either be canceled or significantly delayed in time, and it is better to liquidate open buy positions.

Let’s Trade estimate the entry levels on the four-hour chart.

Buy trade entry levels are located at 45.80, which coincides with the intermediate correction level of 50.0% Fibonacci. Given that the quotes are below it, a signal can be received before the end of this month, when the correction trend moves into the stage of a full-fledged trend and reaches a full Fibonacci correction.

Given the nature of the underlying fundamental factors and the average daily volatility of the trading instrument over the past month of 55.0 points, the asset’s movement to the target zone of 55.00 may take approximately 47 trading sessions.