AT&T Is Heading Toward A Key Support Level: Could It Bounce Soon?

AT&T Is Heading Toward A Key Support Level: Could It Bounce Soon?

Photo: Courtesy of AT&T

AT&T Inc. (NYSE: T) shares have been trading down Tuesday, pushing lower back toward support. There looks to be no evident company news to explain the drop in share price. The stock was trending throughout the day on social media sites.

AT&T was down 0.31% at $27.44 at last check Tuesday.

AT&T Daily Chart Analysis

  • Shares are trading within a sideways channel and have recently been falling toward support.
  • The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.
  • Each of these moving averages may hold as a possible area of resistance in the future.
  • The $32 has held as resistance in the past and may continue to in the future, while the $26.50 level has held as support in the past and may hold again. The stock is beginning to near this support level and could use a bounce off of it.
  • The Relative Strength Index (RSI) has been moving lower and now sits at the 34 level. This nears the oversold range where the stock will see many sellers.

(Click on image to enlarge)

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What’s Next For AT&T?

Bullish traders would like to see the stock bounce off the support line and begin to form higher lows. Bulls would then like to see the stock form higher lows up to the resistance level and breakout.

Bears would like to see the stock fall lower and break below the $26.50 support level. If the stock began to hold this level as resistance then it may see a possible further downward push.

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