The technical indicators suggest that AT&T, Inc. (T) has been attracting buyers in recent months and this company is highlighted in Jim Cramer's list of 15 groups or sectors that have been unaffected by the recent trade flap with China. Let's check out the charts and indicators.
In this updated daily bar chart of T, below, we can see a wide sideways to lower trading range the past 12 months. Prices are currently below the declining 50-day moving average line and just below the declining 200-day line, but that is just one way to look at the price action. Another observation is that we can see higher lows from November. Higher highs have not happened yet but a rally to $38 would change the picture.
The daily On-Balance-Volume (OBV) line has been showing a positive trend from early November. A rising OBV line happens when buyers of a stock are acting more aggressive with heavier volume being transacted on days when the stock closes higher. In the lower panel of this first chart we can see a cover shorts buy signal from the Moving Average Convergence Divergence (MACD) oscillator.
The weekly bar chart of T, below, has not yet come around with bullish-looking indicators. Prices are below the declining 40-week moving average line but it won't take much of a rally to cross above it. The weekly OBV line shows a lower pattern the past three months but the line is still up from the late October low. The weekly Moving Average Convergence Divergence (MACD) oscillator is below the zero line but it has just started to narrow and that could eventually become a cover shorts buy signal.
In this Point and Figure chart of T, below, we can see a bearish price target of $32.06 but a rally to $37.48 would be a positive move on this chart. A decline to $33.93 would be bearish.
Bottom line: Looking to rotate some of your positions away from the bad news line of fire that has been going on since late January? Consider buying T on strength above $37.50.