July 13 Chart of the Day - AT&T
Communications giant AT&T (ticker T) has been tiptoeing and flirting with really breaking down from a price action technical analysis perspective.
Simply looking at support/resistance and trend as taught in our Introduction to Price Action Trading course one can see that price is once again at a major decision zone or "line in the sand" as it can often be referred to.
Layer in two additional price action tools that we teach, Fibonacci and Change Control Zones, both traders and investors can see more specifically the aforementioned zone roughly between $14.25 - $15.25.
As the saying goes, the level will hold until it doesn't... And for the last 20 years this area on the chart has held multiple times.
While there's no guarantee it will hold again, the likelihood it will is in its favor if history repeats itself. But if it doesn't, then price could potentially fall down to the $12 area or even below. This would probably create "panic mode" for management and investors.
With quarterly earnings scheduled for July 26th this is a chart we'll be watching closely.
So what's next?
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
Take a look at the charts and let us know what you think.
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