TheStreet's Quant Ratings service upgraded their rating of AT&T (T) , the iconic telecom giant. I have not looked at T since March 9 when we wrote that "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."
Let's check out the charts and indicators again.
In this daily bar chart of T, below, we can see that prices have improved since making a low in March. Prices gapped higher in early April and continued to firm. T is now trading above the rising 50-day moving average line and above the bottoming 200-day line. The 50-day line has crossed above the 200-day line for a bullish golden cross buy signal.
The On-Balance-Volume (OBV) line shows improvement from December. The Moving Average Convergence Divergence (MACD) oscillator is close to a downside crossover but it is well above the zero line.
In this weekly Japanese candlestick chart of T, below, we can see that prices are trading above the 40-week moving average line. A lack of large upper shadows is a positive development.
The weekly OBV line has been bottoming the past six months. The weekly MACD oscillator is crossing above the zero line for an outright buy signal.
In this daily Point and Figure chart of T, below, we can see a potential upside price target in the $29 area.
In this weekly Point and Figure chart of T, below, we can see a $26 price objective.
Bottom line strategy: Traders could go long T at current levels and on available weakness. Risk below $19.50. On the upside the $29 area is our price target.
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The shares are down sharply after the retailer reported its latest earnings.
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