AT&T Inc. (T) — This major provider of telecommunications services to consumers and businesses in the United States and internationally has fallen from a high of almost $43 to under $22 in a little over a year.

On Nov. 26, with T at $28, the Chart of the Day said, “Now T is showing signs of a bottom, with a buy signal from our in-house Collins-Bollinger Reversal (CBR) indicator, a buy from the stochastic indicator, and a close above the 20- and 50-day moving averages.”

The stock ran to $31 before profit-taking drove it down to $26 and a new CBR buy signal. Note the upward arching stochastic that is just shy of a buy signal.

The target for a “telephone trade” is $32. Longer-term buyers may want to add T to their investment-grade list of holdings.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.