December 11 Chart of the Day - AT&T
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Many analysts that follow stocks like AT&T (T) like to use fundamental analysis and projected future earnings to determine share price. And that's fine and once was an approach that we believed in...
But now, we prefer price action technical analysis to anticipate future share price movement.
Today we'll take another look to see if we can determine where price could be heading.
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Monthly Chart
On the monthly chart we can see that after setting its $45.22 all time high (ATH) back in 1999 price fell steadily over the next 20+ years back all the way down under $14 ultimately making a series of lower highs and lower lows.
Since then, price is moving back to the upside attempting to change that long term trend.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the subsequent run back up. The bulls would like to continue making their series of higher highs and higher lows /aka/ an uptrend - but that remains to be seen.
Price may be attempting to continue upwards making a new series of higher highs and higher lows but has formidable resistance to climb through first in the form of a bear 61.8% retracement and a very long term trend line that broke a few years ago.
Could this be the ole classic "break and retest" that firmly rejects price back to the downside?
Or will this be the time that long term buy and hold fundamental investors have been hoping for that powers the stock back up towards the glory days?
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
