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AT&T (T) Rebounds on Earnings Beat; 39.50-40 Should be Monitored

AT&T (T) reported better than expected Q2 earnings after the 7/25 session and its share price surged during the 7/26 session. We have looked at an ABC projection towards 35, but T found support at 36. I think for now, it has upside towards 39.50-40. But we will have to see if T can break above that critical resistance. 

AT&T (T) Daily Chart

(click to enlarge)

Critical Resistance:
- The 39.50-40 area involves some key resistance factors:
1) Previous support/resistance pivot.
2) 200- and 100-day simple moving averages (SMAs) are around here. 
- If price does reach this area, also monitor the RSI. A bearish divergence between the RSI and price while it is around 40 could be a sign of a subsequent bearish swing. 
- But if price can push through 40, we can expect it to test the 2016-2017 highs at 43 and 44.
- After all, the weekly chart shows us that the overall trend has been bullish since 2009. 

T Weekly Chart

(click to enlarge)