AT&T Inc. : Pull back in daily data
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$33.59 | $0 | $32.25 | -100% |
Since the beginning of the year, the company has regularly underperformed the S&P 500 index, but for this month this trend is reversed. The share is currently trading 14 times full year 2012 earnings per share estimate, cheaper than sector’s average, according to Bloomberg Peers.
Graphically, the share is in bullish trend on all horizon views. In daily data the share is breaking out the USD 33 resistance, and now the stock is setting up a “pull back” movement. In the past weeks the security broke out the long term resistance of USD31.6 in weekly data. This technical pattern besides moving averages well oriented could give an opportunity to take a long position on the stock. We forecast a new acceleration after a “pull back”, which could lead the share towards USD 36.5, repeating the last bullish trend. We suggest a stop loss on 20 days moving average of USD 32.5.