Don't Hang Up on AT&T Just Yet
Higher stock prices are on deck for Ma Bell.
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In my April 24 review of AT&T T I wrote:
"Many sell-side analysts will point out the hefty yield that T pays out to shareholders. That's very nice but I would like to see the stock price rally. Aggressive traders could go long T at current levels risking to $15.50. Add to longs above $17.50 and above $18.00."
Let's check and see how things are going today.
In the updated daily bar chart of T, below, I can see that the shares have rallied above $17.50 and above $18, which were my levels to add to long positions (see above). Prices are trading above the rising 50-day moving average line and above the rising 200-day line.
The trading volume has been active the past year but that is not surprising considering how many shares are outstanding. The On-Balance-Volume (OBV) line has moved higher in step with the price action. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of T, below, I see a positive picture. Prices have made new highs for the move up. T trades above the rising 40-week moving average line.
The weekly OBV line shows us a drift higher since October. The MACD oscillator has turned higher for a fresh buy signal. Prices have broken a longer-term downtrend line (not drawn).
In this daily Point and Figure chart of T, below, I can see that prices have reached and exceeded an $18 price target.
In this weekly Point and Figure chart of T, below, I can see a price target in the $22 area.
Bottom-line strategy: Traders who went long T on my prior recommendation should continue to hold those positions. Risk to $16.75 now. The $22 area is my nearby price target with $26 after that.
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