The reaction from $23 support fueled by excellent earnings and stable outlook has been very positive. I got filled on 1 of 3 orders. I was expecting the price to get down a bit more, but it turned on the top target and had this wonderful recovery. Only thing is, every time in history, whenever T has a price pump like this, it has met with severe downturn and many times, a lower low. The question here is, is T going to start a major bull market of wave 3 of several degrees or are we in for a bull trap that will drag the correction on for many more months.
Either way, the good news is, the structure moving up from $23 is a 5 waves move. It is possible to extend the 5th wave a bit more, but more or less the structure looks complete. We need to see a 3 waves move down to $26 to $25 support area. If it takes a little time here to consolidate, that will be good. 5 waves moves are followed by another 5 waves move. So, after a correction, we should expect another move higher. In that next move up, if price stalls at $28 - $30 region or worse, gets a sharp reversal, then a bull trap is most likely at play. Putting a trailing stop loss would be very important. But if T is going to enjoy a long bull market, then the next correction would be a great opportunity to double or triple up. We should see a nice 45 degree price rise just like the run from 2023 to 2025, only to be a longer and higher price action. Add the juicy dividend in the mix and it is a winner in my book!
If it is a bull trap and another leg down coming to make a lower low, next low target would be at $21. It is not too bad in the grand scheme of things. I will be doing DCA in the next move down, as long as $13.46 holds. That is the red line for me.
Either way, the good news is, the structure moving up from $23 is a 5 waves move. It is possible to extend the 5th wave a bit more, but more or less the structure looks complete. We need to see a 3 waves move down to $26 to $25 support area. If it takes a little time here to consolidate, that will be good. 5 waves moves are followed by another 5 waves move. So, after a correction, we should expect another move higher. In that next move up, if price stalls at $28 - $30 region or worse, gets a sharp reversal, then a bull trap is most likely at play. Putting a trailing stop loss would be very important. But if T is going to enjoy a long bull market, then the next correction would be a great opportunity to double or triple up. We should see a nice 45 degree price rise just like the run from 2023 to 2025, only to be a longer and higher price action. Add the juicy dividend in the mix and it is a winner in my book!
If it is a bull trap and another leg down coming to make a lower low, next low target would be at $21. It is not too bad in the grand scheme of things. I will be doing DCA in the next move down, as long as $13.46 holds. That is the red line for me.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.