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AT&T (T) - Critical Resistance At 39.50-40 Holds

AT&T (T) has been choppy lately. In July, it fell sharply to 36.00 but rebounded sharply as well. Last time we looked at AT&T (T), we suggested monitoring the 39.50-40 area for resistance. We noted that this was key resistance and that a break above 40 can open up the 2017 highs around 43. Otherwise, AT&T (T) is maintaining its bearish bias as price holds under the critical resistance reinforced by the 200-day simple moving average (SMA).

AT&T (T) Daily Chart

(click to enlarge)

At the Crossroads:
- It is no surprise we saw resistance the 39.50-40 area.
- However, this does not necessarily mean the market is bearish. 
- The July rally was a very sharp one that pushed above May's and June's highs.
Key Support:
- Now, we should monitor price if it gets into the 37.50-37.75 area. 
- Also pay attention as the RSI nears 40. If price can hold above 37.50 and the RSI above 40, we still have bullish momentum in July fighting against the bearish reaction at the 39.50-40 resistance.