The technical picture of the AT&T stock (NYSE: T) on our daily chart shows that after a strong decline in the end of January, the share price started moving sideways and is now seen to be forming somewhat of a descending triangle pattern, or even a bearish pennant. However, until we get a clear break below the 23.56 hurdle, marked by the lowest point of January, we will remain cautious about further declines.
If, eventually, the stock drops below that 23.56 hurdle, this will confirm a forthcoming lower low, temporarily spooking some remaining buyers from the arena. T might then drift to the 22.85 zone, marked by the low of December 16th. If the slide continues, the next possible target could be at 22.03, which is the lowest point of December.
Currently, the RSI and the MACD are pointing slightly to the upside. However, the RSI remains below 50 and the MACD is still below the signal line and well below zero. The two oscillators seem to support the idea discussed above, which is to wait for a drop below the 23.56 zone, before aiming lower.
Alternatively, to consider a move higher, we would prefer to wait for a move back above the 25.53 barrier, marked by the high of January 31st. This way, more buyers might join in and drive T towards the high of January 26th, at 26.84. If the buying doesn’t stop there, the next possible target could be at 27.46. That is the highest point of January and the current highest point of this year.
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