T-Mobile (TMUS) stock has declined sharply since April and the path forward is not encouraging.
Let me show you the charts and indicators.
In the daily bar chart of TMUS, below, I can see that the shares have turned lower and broken the lows going back to September/October. Prices trade below the declining 50-day moving average line and below the declining 200-day moving average line.
The On-Balance-Volume (OBV) line shows weakness from early April and tells me that sellers of TMUS have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but has crossed to the upside for a cover shorts buy signal.
In the weekly Japanese candlestick chart of TMUS, below, I see a weak picture. The shares are in a downward path and trade below the negatively sloped 40-week moving average line.
The weekly OBV line and the MACD oscillator are weak. The most recent candlestick patterns show lower shadows, suggesting that traders have been rejecting the lows. Weakness below $125 should refresh the downtrend.
In this daily Point and Figure chart of TMUS, below, I can see that the software is projecting a potential downside price target in the $101 area.
In this weekly Point and Figure chart of TMUS, below, I can see a potential downside price target in the $98 area.
Bottom-line strategy: The charts of TMUS look bearish. Traders should avoid the long side of TMUS for now.
