I am long T. I hold a 5% position in my retirement account as a blue chip dividend stock with potential growth (pending merger). I bought in two troughs, at $34 and $32.
I have a mental stop loss at a close under $30.00, because a close under the buy zone likely means a break down to the bottom of my long-term channel.
I don't see that happening and I expect additional consolidation between $30-$34 while the lawsuit with the US Government takes its course to allow the merger to proceed.
I see the merger being allowed, AT&T will benefit substantially long-term, and my investment will continue to pay huge dividends moving into the long-term future.
For the time being, look to see if 30.50 holds and if so, we could get back into the upper trend channel and back to $40. A lot has to happen for this to be so, and the 20-day is acting as HEAVY resistance to breaking out of this bearish downtrend. I see the risk/reward to buying at these levels about 3 to 1, with a higher probability of the upside hitting before my mental stop... and in the meantime, pay me my 5%.
THIS IS NOT A RECOMMENDATION TO BUY OR SELL - THIS IS JUST MY OPINION BASED ON MY REVIEW OF THE CHART. I AM LONG T
I have a mental stop loss at a close under $30.00, because a close under the buy zone likely means a break down to the bottom of my long-term channel.
I don't see that happening and I expect additional consolidation between $30-$34 while the lawsuit with the US Government takes its course to allow the merger to proceed.
I see the merger being allowed, AT&T will benefit substantially long-term, and my investment will continue to pay huge dividends moving into the long-term future.
For the time being, look to see if 30.50 holds and if so, we could get back into the upper trend channel and back to $40. A lot has to happen for this to be so, and the 20-day is acting as HEAVY resistance to breaking out of this bearish downtrend. I see the risk/reward to buying at these levels about 3 to 1, with a higher probability of the upside hitting before my mental stop... and in the meantime, pay me my 5%.
THIS IS NOT A RECOMMENDATION TO BUY OR SELL - THIS IS JUST MY OPINION BASED ON MY REVIEW OF THE CHART. I AM LONG T