• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

T-Mobile Is a Way to Play 5G, but Hold the Line for Now

Traders should stay cautious of the long side of TMUS for a while.
By BRUCE KAMICH
Jan 19, 2021 | 01:06 PM EST
Stocks quotes in this article: TMUS

Jim Cramer told viewers of "Mad Money" Friday night that in a volatile market, they should focus on long-term secular themes, like the arrival of 5G wireless technology. Not only is 5G up to 100 times faster than current technology, it's also optimized for the next generation of Internet devices and applications. Cramer unveiled a new 5G index with 10 stocks he said are riding the 5G wave.

First up was T-Mobile  (TMUS) , the carrier with the largest 5G network. 

Let's check out the charts and technical indicators of TMUS. 

In this daily bar chart of TMUS, below, we can see that the price of TMUS has doubled from its March nadir, but something has been shifting with the technical indicators since early December that could generate a temporary correction to the downside.

Prices are still in an uptrend, but trading below the rising 50-day moving average line. The On-Balance-Volume (OBV) line could be warning of price weakness ahead. The OBV line was steady in October when prices corrected, but the OBV line has been showing some weakness recently and prices have weakened, too. Prices and the OBV line are now both pointed down. The Moving Average Convergence Divergence (MACD) oscillator has been weakening for several weeks and is now close to crossing below the zero-line for an outright-sell signal.  

In this weekly Japanese candlestick chart of TMUS, below, we can see bearish "hanging man" patterns at the end of December and the first week of January. The latest candle is red and bearish and confirms the top reversals. TMUS is trading above the rising 40-week moving average line. The weekly OBV line peaked back in June and the line has not confirmed the price gains. The MACD oscillator has very close to a downside crossover and a take-profit, sell signal. 

 

In this daily Point and Figure chart of TMUS, below, we can see a potential downside price target in the $114 area. 

 

In this weekly close only Point and Figure chart of TMUS, below, we can see a potential price target in the $182 area.  

Bottom line strategy: Traders should stay cautious of the long side of TMUS as some indicators are suggesting weakness. The daily Point and Figure chart suggests the $114 area as a possible price target and this is probably a better location to probe the long side of TMUS around the middle of the first quarter.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Technical Analysis | Telecommunications | Mad Money | Telecom Services

More from Investing

This Market Might Make Your Head Spin

James "Rev Shark" DePorre
Mar 8, 2021 4:40 PM EST

The rotation out of technology and into 'reopening' plays is driving the deceptive action.

I Wouldn't Be Surprised if Palantir Technologies Worked Lower in the Weeks Ahead

Bruce Kamich
Mar 8, 2021 2:40 PM EST

Making recommendations about stocks that are thinly traded or are new issues is always a little 'dicey'.

How Does Dick's Sporting Goods Look Before the 'Big Game'?

Bruce Kamich
Mar 8, 2021 2:05 PM EST

Let take a look at the charts ahead of Tuesday's earnings release.

Shark Bites: I've Got My Money on This Undervalued iGaming Stock

James "Rev Shark" DePorre
Mar 8, 2021 12:15 PM EST

What makes GNOG particularly interesting right now is that it has recently called its warrants.

Pfizer Downgraded to Hold by Our Quant Service - How Do the Charts Look?

Bruce Kamich
Mar 8, 2021 12:12 PM EST

Be careful as we could see a retest of the June low in the weeks ahead.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:38 AM EST GARY BERMAN

    The INDU and DIA

    FIBOCALL: The INDU index and the DIA The INDU ...
  • 10:44 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "The Challenge of Short-Selling"
  • 08:40 AM EST PAUL PRICE

    Recent Pick SpartanNash (SPTN) Raised Its Quarterly Payout by 3.9%

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

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

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.

FactSet 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.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login