AT&T Stock Seems To Be Forming A Falling Wedge | Technical Analysis
After hitting the area near the 31.88 hurdle in the beginning of December, the stock of AT&T Inc. (NYSE: T) started correcting lower towards its short-term upside support line drawn from the low of October 29th. This move lower currently looks like a falling wedge pattern, which tends to be a bullish indication, according to the TA rules. However, as long as the price stays inside that pattern, we will take a neutral approach.
If the share price remains inside that wedge, but stays above the aforementioned upside line, the stock could remain on the radar of new buyers. A break of the upper bound of the falling wedge and then a push above the 30.69 barrier might attract more buyers into the arena. This way, the door could get opened for a further move north, initially targeting the 31.26 zone, or even the current highest point of December, at 31.88.
The RSI is currently flat, but fractionally below 50. The MACD is moving lower, while positioning itself below its trigger line. However, the MACD is still above zero, which gives a bit of hope for the buyers. The negative RSI suggests there might be a bit more downside in the near term, however the still-positive MACD supports the idea of seeing a rebound later on.
Alternatively, if the stock breaks below that upside line and then slides below the 29.78 hurdle, marked by the high of December 7th, that may spook new buyers from the field for a while. The stock might drift to the 29.42 obstacle, or even to the 28.70 area, which is the low of November 30th. If there are still no new buyers near that price, T may fall further and test the 28.12 level, marked by the lows of November 9th and 19th.
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