AT&T (T) shares are moving up in Thursday's pre-market activity as the company's third-quarter earnings topped estimates and the telecom giant raised its full-year guidance. Let's check on the charts and indicators to see if they were showing technical promise ahead of today's report to shareholders.
In our Sept. 29 review of T we were not very optimistic for a rally.
In this updated daily bar chart of T, below, we can see that prices continued to weaken into the middle of October. Prices are pointed down. The 50-day and 200-day moving average lines are pointed down. The On-Balance-Volume (OBV) line shows a decline as sellers of T have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bearish but recently gave us a cover shorts buy signal.
In this weekly Japanese candlestick chart of T, below, we can see a bottom reversal pattern in the last three weeks. Bottom reversals are considered either a low that starts a turn to the upside or a low that starts a turn sideways. Both are important and useful clues to trading a stock. The slope of the 40-week moving average line is still bearish and well above the market. The weekly OBV line is bearish with only a slight move up in October. The MACD oscillator is bearish and only beginning to narrow.