T - Getting close to a short target? Possible 5-0 Harmonic?
We've had a very nice run up from the buy signal at the Dec 2018 lows! Look at buy signal on the long term 35 year buy line (green).
Wait- a huge 56% profit (+ dividends) in 11 months on a boring dividend paying stock?
You bet! The mood has changed from a pessimistic panic sell last year to a bullish outlook with most traders now. Sentiment has now swung to the very bullish side... maybe it's time to look at locking in our profits soon...
A quick look at the weekly chart shows that we are now getting near $40 ... the completion of a 161.8% extension from the low last December 2018. The Harmonic 5-0 pattern may be at play here. As we chart this recent candle, it is only 2 trading days old this week, but... we may have the doji pattern form by Friday close... lets see. We are now reaching the red sell zone as shown.
Also note the divergence on rsi for the weekly chart (not shown), it may be setting up a short term top.
We should watch the upward slope black trendline for a break.
This Could be a great short sell. In fact, the Long term puts for June and Sept 2020 are pretty cheap right now. We would expect to hit the lower 50% targets in the 1st quarter 2020 and sell for a profit then... just wanna buy plenty of time to be safe.
If we can pick off this top, and it proves to be a 5-0 pattern, that would indicate a nice 50% pullback is due soon. This would allow us to take our profits and buy more shares in the green zone shown and compound our T investment for the next move up again!
It is very nice to know that we have the 35 year long term support under us (green buy line) and the recent strong move up this year should be the beginning lift off for many years to come. It looks like AT&T has finally broken out of the boring 20 year long sideways (looser) move since 1998 highs.
Remember the harmonic pattern shown is just the correction we expect in a bigger long term bullish pattern.
Although the pattern shows a 50% pullback due soon, it is a Bullish 5-0 pattern for the long term.
Please note that the chart shown uses log and dividend adjusted settings.... the best way to measure performance of high dividend paying stocks.
Wait- a huge 56% profit (+ dividends) in 11 months on a boring dividend paying stock?
You bet! The mood has changed from a pessimistic panic sell last year to a bullish outlook with most traders now. Sentiment has now swung to the very bullish side... maybe it's time to look at locking in our profits soon...
A quick look at the weekly chart shows that we are now getting near $40 ... the completion of a 161.8% extension from the low last December 2018. The Harmonic 5-0 pattern may be at play here. As we chart this recent candle, it is only 2 trading days old this week, but... we may have the doji pattern form by Friday close... lets see. We are now reaching the red sell zone as shown.
Also note the divergence on rsi for the weekly chart (not shown), it may be setting up a short term top.
We should watch the upward slope black trendline for a break.
This Could be a great short sell. In fact, the Long term puts for June and Sept 2020 are pretty cheap right now. We would expect to hit the lower 50% targets in the 1st quarter 2020 and sell for a profit then... just wanna buy plenty of time to be safe.
If we can pick off this top, and it proves to be a 5-0 pattern, that would indicate a nice 50% pullback is due soon. This would allow us to take our profits and buy more shares in the green zone shown and compound our T investment for the next move up again!
It is very nice to know that we have the 35 year long term support under us (green buy line) and the recent strong move up this year should be the beginning lift off for many years to come. It looks like AT&T has finally broken out of the boring 20 year long sideways (looser) move since 1998 highs.
Remember the harmonic pattern shown is just the correction we expect in a bigger long term bullish pattern.
Although the pattern shows a 50% pullback due soon, it is a Bullish 5-0 pattern for the long term.
Please note that the chart shown uses log and dividend adjusted settings.... the best way to measure performance of high dividend paying stocks.