VZ poised to break resistance; close above 50.75 targets 51.68; room for further gains.

I chose Verizon as my first stock, and it has performed well since the beginning of the year and is outperforming the market. We have increased by 23%. To me, it seems poised to break through this technical level that has seen resistance earlier in the year, and there are two thoughts here.

Firstly, today's deal is a buy, and I like the idea of owning the stock for the long term even if the buy options don't materialize and we don't see this big market rally in the coming months.

But owning a stock with an annual return of 5.6% is tempting, especially in today's market when you are looking for some diversification, an opportunity to get a premium and also the potential to rise above these current levels.

Okay, Rick. We are just one dollar away from Verizon's 52-week high. Based on that, do you see potential for further gains from here? Well, we are approaching that level, as you say, and to illustrate it here, there is a set of previous peaks that formed a ceiling.

The highest level reached during the day was 51.68. We are very close. One of the warnings I would like to mention is that the overall price pattern is very similar to the shape of a rising wedge.

We have a trend line that runs through our bottoms, and an accompanying boundary line that runs through the peaks. You can see that they are converging towards each other with a steeper slope at the bottom here.

It is generally viewed as a somewhat bearish setup if you adhere to this type of pattern here. But I always say take that with a bit of caution. In fact, it can break in either direction, because what you are essentially looking for is simply a crossing of either of these two lines here.

In the event of climbing above this last ceiling near 50.75 that we also formed. Therefore, if we close strongly above that level, it will make the old highs near 51.68 a bigger target to watch out for.

Meanwhile, on the downside, 49.12 was a relative bottom we saw, as was 48. So, those would be other bearish levels to watch if you have a more bearish outlook. Our moving averages in this case show our 5-day exponential moving average, and our weekly exponential moving average in dark blue is aligned with the trend line around 50.18.

Therefore, it will be noted as a support convergence point if it is breached. Our 21-day exponential moving average is at 49. That could be another area to be wary of. The Relative Strength Index (RSI) is still following our upward-moving green trend line here.

You can look for a breakout above the 70 level in the overbought zone as a sign of more strength to come, especially if we start to break above those old highs. The trading volume profile shows that most of the trading activity near where we are now is between 49 and 51, with a notable high here around 50.50.

So, if we start to fall too far below 49, things become less intense.

Yes, I'm looking at the January buy option at an execution price of 55 here, Marley. With the current levels, I think we're a little higher, but it was trading around $1.10. Therefore, you can expect a return of slightly more than 2% per share over the next four months.

But the real idea here is to own the stock and get the cash dividends, hoping that the momentum will continue and that we will see a breakout above the 51 level in the coming months.

And you know, I think the idea here is also to create an exit point in 2027. If there is an idea to exit the financial center, you have several years basically to manage the tax consequences.

But I think the overall trends here, and the idea that this is a stock, as I said again, not a stock in the spotlight, but when you look at the price action, it's really impressive over the last few months.

If it can surpass those high levels it recorded at the beginning of the year, I think there is room for further gains.