AT&T (T) is trading lower Thursday and is very close to a major support breakdown.
How major do you ask? Let's look at one Point and Figure chart.
In the daily Point and Figure chart of T, below, we used close-only price data. T has not traded at $15 on a closing basis since 2014. Repeat -- since 2014.
A break of $15 will mean that anyone who bought T in the past eight years has a loss (ignoring dividends) and that can precipitate further losses. A price target in the $11 area is shown.
Bottom-line strategy: A 7% dividend is not sweet enough if T declines to $11 or $10 in the months ahead.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
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
Email sent
Thank you, your email to has been sent successfully.
