Verizon Comunication Inc - Research Proposal Example

Verizon Communication Inc. Reasons for movement in share price 04/15/2008 Price: US$ 35.11 Reason: Fundamental: The share price of Verizon Communication Inc. came down 23 cent. The reason behind this downward movement is shares of all telecommunications service providers in the US were seen downward due to low sentiment from buyers on Tuesday. The mixed worries of a rebound in New York manufacturing as well as signs of rising inflation force the investors to keep them away from the telecom shares.

Technical: If we look at the Bollinger band we can find out that the share was overbought on April 3, 2008 so to bring the price at the normal level the share price dropped to the level of US$35.11 on April15 2008 which was an oversold condition as per the Bollinger band. Whereas according to the RSI (Relative strength Index) the company share was over bought on 1st April 2008 and hence to maintain it normal level the share price came down. Date: 22 April 2008 Price: US$35.73Reason:Fundamental: The Verizon Communication price share fell down by 23 cent to drop down at a level of US$35.73. The reason behind this downward movement is the investor concern over earnings of the telecommunication companies as well as the skyrocketing oil prices.

Technical: The share fall due to correction in the market and it dropped to its support level of 10-day moving average. Also as we can see from the graph at (www.finance.yahoo.com) the 10 day moving average just cut down the 50 days moving average on 17 April, 2008 and forced the share price to come down accordingly.Date: 29 April 2008 Price: US$38.21Reason: Fundamental: The Verizon Communication share price jumped 26 cent to the level of US$38.21. The reason behind this jump is the solid earning from the company for the first quarter, this solid earning control the investor worries towards slowing down economy.

Technical: If we look at the graph we would be able to find out that the 10 days moving average crossed the 50 ay moving average in upward direction which is a sign of bullish pattern for the share. Also the higher volume on 28th April, 2008 pushed the share price up on 29th.Date: 6th May, 2008 Price: US$38.89Reason:Fundamental: The Verizon Communication share price dropped down by 1 cent. The reason behind this drop is the poor show by telecom companies, the quarterly earning of some low cost wireless carrier seen as a disappointment from the investor and resulted into 1 cent down for the company.

Technical: It can be seen from the graph that the share price for the company was overbought hence to keep it at the track a small correction bought the share 1 cent down.Date: 13th May, 2008 Price: US$38.11Reason:Fundamental: The Verizon Communication share price jumped 5 cent to US$38.11. the reason behind this rise is a mixed response from the telecom sector which wavered along with the broader market.Technical: The higher volume at the end of 12th May, 2008 pushed the share price up by 5 cent.

Works CitedMurphy, J. J. (1999). Technical Analysis of the financial market . New York Institute of Finance.Yahoo. (2008, May 27). Yahoo finance. Retrieved may 27, 2008, from Yahoo: http://www.finance.yahoo.com