BZ Chart Of The Day: Is The Verizon Death Spiral Finally Ending?

Shares of Verizon Communications Inc. VZ have been in a complete meltdown. In just a few days, its price dropped from $54 to $51 per share.

But now there’s a chance the selling is over and share may have found a bottom.

If they do rally, there’s a good chance they run into resistance around $54. This level was support and support levels can convert into resistance.

It’s because of buyer’s remorse.

See also: BZ Chart Of The Day: AT&T's Bloodbath

Investors who bought Verizon's stock at $54 now regret their decision to do so because the price is lower. A number of these remorseful buyers decide to sell, but they don’t want to take a loss.

As a result, they will be placing their sell orders at $54. If there are enough of these orders, it will form resistance.

To learn more about chart reading, be sure to check out the new Benzinga Trading School.

Photo: Anthony92931, via Wikimedia Commons