1 1 correctly predicted forecast
Send me real-time posts from this site at my email
Fan Yang

AT&T (T) Share Price Awaiting Breakout

The share price of AT&T (T) has been trading in a sideways manner throughout 2017.

AT&T (T) Daily Chart


(click to enlarge)

Consolidation:
- The daily chart shows that price was bullish heading into 2017. 
- Then, the market started to trade AT&T between roughly 40.20 and 43.00. 
- Note that the overall mode is still bullish based on the fact that 1) price is above the 200- and 100-day simple moving averages (SMAs) and 2) the RSI is still holding above 40, which reflects maintenance of the prevailing bullish momentum.
Bearish Scenario:
- If price falls below 40.20, we can be looking for a slide back towards the lows in November, around 36.00. 
- This scenario would gain weight if price broke below 40, and came up to find resistance around 40.50, at most 41.00.
Bullish Mode:
- If price breaks above the 43.00 resistance, AT&T will be testing the 2016 highs around 43.90. 
- I think if price does break 43.00, the resistance around 43.90 will be vulnerable, and we should see AT&T break the 2016 high. 
- Looking at the weekly chart, we can see that price has made a dramatic V-shape reversal in 2016.
- This V-shape reversal essentially tested a consolidation that held price range-bound for 3 years.
- So, we can say that the market is looking at this 3-year consolidation as a base or a pivot, suggesting the market is bullish. 
- Therefore, I would anticipate more of a bullish bias and look to buy around 40.50. 
- However if price does break below 40.20, don't be surprised if the market wants to test the 36-37 area again.