AT&T (T) shares were raised to a buy recommendation by Citigroup (C) here on Tuesday with a $17 price target. The price target is not impressive to start with, but after T's long decline the past four years more base building is needed, in my opinion.
Let's review the charts of the telecom giant, which I last looked at on July 26, so I can show you what I mean.
In this daily bar chart of T, below, I see the chart of a stock that continues to struggle. Prices are still in a downward trend and trade below the declining 50-day moving average line and below the declining 200-day line.
The trading volume spiked in July as prices plunged to a new low but the follow-on trading saw volume decline. This pattern suggests that discouraged longs were sellers and investors with vision have not yet approached. The daily On-Balance-Volume (OBV) line remains in a decline from April.
The Moving Average Convergence Divergence (MACD) oscillator is moving up but it remains well below the zero line.