Shares of AT&T (BILLION) is having a strong reaction after earnings on Thursday, up about 10% at the last check.
The company has delivered a income and beat sales. Furthermore, it raised its full-year adjusted earnings outlook to $2.50 per share or higher from its previous range of $2.42 to $2.46 per share. That’s compared with the consensus estimate of $2.55 a share.
Outside of earnings momentum, however, it’s been a pretty tough road for the telecoms giant.
Even after the company split its online video assets in an effort to create value, both Warner Bros Discovery (WBD) and AT&T stock has fallen this year.
Before today’s rally, AT&T stock was down about 20% for the year and recently suffered a 33% slide from its 2022 high. However, the sagging stock price has rallied. dividend yield to 6.6%.
There are some investors wondering whether telecommunications finally bottomed. At least, I was wondering if it could continue to rise. Look.
Trading AT&T Stocks
Daily chart of AT&T stock.
Chart provided by TrendSpider.com
With a yield of 7%, I looked at AT&T over a month ago when its stock test into a key support area.
Initially, there was no major reaction from this area, but since then we have seen a pretty strong 15% surplus rally with action today.
I can’t help noticing that AT&T stock is plunging into the 10-week and 50-day moving averages, as well as the $16.50 to $17 area, formerly support.
The bulls now want to know if this area will turn to resistance.
If AT&T stock can regain this area, the bulls will take control. That will open the door up to a 50% retracement at $18. Above that put 61.8%, 200-day retracement moving average and VWAP measures weekly between $18.75 and $18.85.
However, if AT&T fails to break through the current area, investors must watch out for some bearish areas.
On the downside, today’s low will be watched at $16.12, followed by a post-earnings gap at $15.76.
The stock is trading pretty well right now, but here are the levels to watch for in the future.
