Verizon shares gain a third straight session on Monday, wireless carrier gets $350 million discount for Yahoo’s core assets

Verizon Communications Inc (VZ) was reported to have obtained an almost three times lower price discount for Yahoo Inc core assets than it had expected. The deal, valued at $4.83 billion, was initially announced last July, while its closure has been delayed due to the two cyber attacks at Yahoo, which the internet company exposed at the end of 2016.

Verizon shares closed higher for a third straight session on Monday. The stock edged up 0.24% ($0.12) to $49.47, after touching an intraday high at $49.53, or a price level not seen since March 7th ($50.06). In the week ended on March 12th the shares of the communication service provider lost 1.48% of their market value compared to a week ago, which marked a second consecutive period of decline and also the worst performance since the week ended on February 5th. The stock has pared its slump to 0.32% so far during the current month, following a 1.27% surge in February. The latter has been the third gain in four months, but yet, the smallest one since July 2015. For the entire past year, the shares of the NYSE-listed company gained 15.49%.

According to a Yahoo filing, in February Lowell McAdam, Verizons Chief Executive Officer, said to Tom McInerney, an executive at Yahoo, that a discount of $925 million would be appropriate. In a response, McInerney later noted that Yahoos board was not convenient with such a large price reduction.

It was then in late February, when Verizon announced it had reached an agreement with Yahoo over a purchase price of $4.48 billion, or $350 million lower than what had been offered initially. The wireless carrier, however, refused to provide explanation for its decision.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Verizon stock are presented as follows:

R1 – $49.51
R2 – $49.54
R3 (Range Resistance – Sell) – $49.58
R4 (Long Breakout) – $49.69
R5 (Breakout Target 1) – $49.82
R6 (Breakout Target 2) – $49.87

S1 – $49.43
S2 – $49.40
S3 (Range Support – Buy) – $49.36
S4 (Short Breakout) – $49.25
S5 (Breakout Target 1) – $49.12
S6 (Breakout Target 2) – $49.07

By using the traditional method of calculation, the weekly levels of importance for Verizon Communications Inc (VZ) are presented as follows:

Central Pivot Point – $49.47
R1 – $50.03
R2 – $50.72
R3 – $51.28
R4 – $51.85

S1 – $48.78
S2 – $48.22
S3 – $47.53
S4 – $46.85