Shares of AT&T (T) started the year on a good note, breaking out above a multi-year consolidation as we can see in the weekly chart.
T Weekly Chart
(click to enlarge)
- After AT&T almost tagged 44, it retreated sharply.
- Since the July high, price has shed more than 13.6%.
- Price also broke below a rising trendline and below the 50-week simple moving average.
- Furthermore, the RSI has cracked below 40, reflecting a loss of the bullish momentum in the first half of the year.
- I think price is already testing the top of a support zone when it tagged 37.
- Note that this was a previous resistance pivot.
- Also note the 50% Fibonacci retracement level at 37.44.
- However, I would not go against such a sharp bearish candle as last week's.
- If price does extend lower, the next level to monitor for support is around 36.00.
- Here, price will be challenged by 1) 61.8% Fibonacci retracement 2) The 100- and 200-week SMAs
So, let's remain bearish on AT&T for now. But as it approaches 36, look for the slide to stall. There might even be a rebound towards the psychological level of 40.00.