AT&T: What Tuesday's Close Tells Us About This High-Yielder

 | Jul 19, 2017 | 10:05 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

t

We checked the charts of AT&T Inc. (T) last month and concluded that, "If T cannot hold $37.50 it is probably going to test the $36 level and could slip further."

Yesterday, T tested $36 and closed at $35.99. The question of the day is whether prices will hold here or decline still further. With T yielding close to 5.5%, yield hungry investors may be attracted. Let's see if the latest charts and indicators give us any fresh insight.

In this daily bar chart of T, below, I can see how prices made a topping pattern from December through March. The downtrend got under way in full force in April. From the March high T has made two distinct trends to the downside. Momentum readings from May to July show some improvement or higher lows and create a bullish divergence when compared to the price action of lower lows. 

Another fresh observation about this chart is that the daily On-Balance-Volume (OBV) line has not made a lower low the past three months even as prices have made lower lows. Traders are not being aggressive on the sell side. Interesting.

In this weekly chart of T, below, we see a weak picture. Prices are below the 40-week moving average line. The weekly OBV line has worked lower since March and the MACD oscillator is bearish.

In this Point and Figure chart of T, below, we see some support not on the weekly bar chart at $35.66 and $35.31. Prices held there before and they could again.

Bottom line: Momentum has slowed and sellers are not being aggressive, but is that enough to have the $35.66-$35.31 support hold? Tuesday's new low close tells us to go slow despite the attractive yield.

Columnist Conversations

Foot Locker's (FL) less than expected quarterly earnings set off a round of selling the entire athletic appare...
View Chart »  View in New Window » Gold has met the first upside target off the last setup zon...
View Chart »  View in New Window »
View Chart »  View in New Window »

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.