Dow component AT&T (T) topped out near $43 in September 2007 and sold off to $21 during the bear market. The subsequent uptrend topped out at a four-year high near $38.50 in 2012, giving way to a channeled decline that's still in force nearly three years later. The stock is nearing completion of the DirecTV (DTV) merger, which is generating a modest degree of speculative interest. (AT&T is part of TheStreet's Dividend Stock Advisor portfolio.)
It hit an 11-month high last week and is nearing the trendline formed by declining highs going back to 2007. A breakout should be significant, setting up a test of the eight-year high. This is a low-volatility issue and there's just five points between the breakout level and the old high, but a 5.4% dividend makes up the difference, suggesting a long-term buy strategy once the rally pushes above $37.50.
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