Undercut and Reverse Pattern Observed in TMUS
On October 23rd, T-Mobile US (TMUS) released its earnings report, surpassing analyst expectations. Despite the positive results, the stock initially experienced a sell-off and closed down approximately 3.3%. The overall downward movement exceeded 5%, with trading on October 24th pushing the stock below its June lows. However, the following day saw a positive shift, as the stock closed higher and rallied past the previous June low. This price action meets the criteria for an Undercut and Rally formation.
Trading Strategy and Position Management
After observing these developments, I waited until today to confirm a potential follow-through day. When the stock rallied above yesterday’s high, I initiated a new position at half of my typical size, setting a stop-loss just below the most recent low to manage risk. Despite this move, TMUS remains under all of its key moving averages. It is currently attempting to reclaim the 5-day moving average (DMA). The next targets for the stock would be the 10-day and then the 20-day moving averages. Should TMUS successfully move above the 20 DMA, I plan to consider adding to my position.
Q3 2025 Earnings Performance
On Thursday, October 23, 2025, at 6:58 AM ET, T-Mobile US reported earnings of $2.59 per share for the third quarter ended September 2025, with revenue totaling $21.96 billion. These results exceeded consensus estimates of $2.42 per share in earnings and $21.73 billion in revenue. The Earnings Whisper number was $2.56 per share, indicating that TMUS beat expectations by 1.17%. Additionally, revenue increased by 8.90% compared to the same period last year.
Disclaimer
Readers are strongly encouraged to conduct their own analysis and to adhere to their personal trading rules. Investing in the stock market always carries risk, and it is essential to make informed decisions with your own capital.
On October 23rd, T-Mobile US (TMUS) released its earnings report, surpassing analyst expectations. Despite the positive results, the stock initially experienced a sell-off and closed down approximately 3.3%. The overall downward movement exceeded 5%, with trading on October 24th pushing the stock below its June lows. However, the following day saw a positive shift, as the stock closed higher and rallied past the previous June low. This price action meets the criteria for an Undercut and Rally formation.
Trading Strategy and Position Management
After observing these developments, I waited until today to confirm a potential follow-through day. When the stock rallied above yesterday’s high, I initiated a new position at half of my typical size, setting a stop-loss just below the most recent low to manage risk. Despite this move, TMUS remains under all of its key moving averages. It is currently attempting to reclaim the 5-day moving average (DMA). The next targets for the stock would be the 10-day and then the 20-day moving averages. Should TMUS successfully move above the 20 DMA, I plan to consider adding to my position.
Q3 2025 Earnings Performance
On Thursday, October 23, 2025, at 6:58 AM ET, T-Mobile US reported earnings of $2.59 per share for the third quarter ended September 2025, with revenue totaling $21.96 billion. These results exceeded consensus estimates of $2.42 per share in earnings and $21.73 billion in revenue. The Earnings Whisper number was $2.56 per share, indicating that TMUS beat expectations by 1.17%. Additionally, revenue increased by 8.90% compared to the same period last year.
Disclaimer
Readers are strongly encouraged to conduct their own analysis and to adhere to their personal trading rules. Investing in the stock market always carries risk, and it is essential to make informed decisions with your own capital.
Note
TMUS This one is not working out well. I have held it longer than I should have as it has breached my stop loss but I held it thinking it would recover. It still may, but I have put a stop in with my broker to sell if it drops below today's low.
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I am under no obligation to post any action or update to any idea.
Follow me on "X" where I post more content.
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.
Ideas I publish are my own. They are not meant to be investment / trading advice. You are encouraged to do your own due diligence.
I am under no obligation to post any action or update to any idea.
Follow me on "X" where I post more content.
I am under no obligation to post any action or update to any idea.
Follow me on "X" where I post more content.
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.