AT&T (T) is slated to host an analyst and investor day on Friday, so this looks like a good time to review the charts and indicators of the world's largest telecommunications company.
In this daily bar chart of T, below, we see some interesting developments. Prices are in a longer-term downtrend but made a strong rebound in December to test the underside of the negatively sloped 200-day moving average line. Prices have declined from the middle of January and are back below the 50-day moving average line, which is turning downward. Trading volume has been active since early December, but the On-Balance-Volume (OBV) line has moved up and down with the price action. A declining OBV line tells us that sellers of T have been more aggressive since the middle of January. The Moving Average Convergence Divergence (MACD) oscillator is trying to make a cover shorts buy signal.
In this weekly Japanese candlestick chart of T, below, we see a longer-term decline. There are a few lower shadows, but none of them seem impressive enough to suggest a strong rejection of the lows. Prices are trading below the declining 40-week moving average line. The weekly OBV line is bearish and so is the MACD oscillator.
In this daily Point and Figure chart of T, below, we can see a downside price target of only $13. A trade at $21 will refresh the downtrend.
In this weekly Point and Figure chart of T, below, we can see the software comes up with the same bearish price target of $13.
Bottom line strategy: Maybe AT&T will find buying interest (support) in the $23 area or at worst the $23-$22 area. The risk on the charts is if T trades down to $21 -- a new low for the move. Avoid the long side of T.
