AT&T (T) reported better than expected Q2 earnings after the 7/25 session and its share price surged during the 7/26 session. We have looked at an ABC projection towards 35, but T found support at 36. I think for now, it has upside towards 39.50-40. But we will have to see if T can break above that critical resistance. AT&T (T) Daily Chart(click to enlarge)Critical Resistance:- The 39.50-40 area involves some key resistance factors:1) Previous support/resistance pivot.2) 200- and 100-day simple moving averages (SMAs) are around here. - If price does reach this area, also monitor the RSI. A bearish divergence between the RSI and price while it is around 40 could be a sign of a subsequent bearish swing. - But if price can push through 40, we can expect it to test the 2016-2017 highs at 43 and 44.- After all, the weekly chart shows us that the overall trend has been bullish since 2009. T Weekly Chart(click to enlarge)