AT&T, Inc. (NYSE: T) — This household name fell from a high of almost $43 to below $22 at the bear market low.
The stock formed a bottom (cup), and then broke from the right side of the cup, which completes a double-top. Often stocks will break from a top like this only to immediately succumb to profit-taking, and that’s what appears to be occurring now.
Buy T at $28.50 or lower. The technical target for the breakout is $32.50. S&P has a “five-star buy” on AT&T with a 12-month target of $33. The stock pays a dividend of $1.68 for a yield of 5.94%.
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