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AT&T’s Chart Buzzing With Bullish Signals

A break through a long-term bearish resistance line, golden cross and "V" bottom support higher prices


EDITOR’S NOTE: This story has been updated to reflect updated information. We apologize for the errors.

AT&T (T) — Formerly SBC Communications, this telephone and broadband service holds full ownership of AT&T Mobility (formerly Cingular Wireless). Standard & Poor’s ranks this quality stock a 4-star buy, estimating EPS of $2.77 in 2014 and $2.86 in 2015.

Capital spending, focused on wireless, is expected to increase in 2014, and their rating assumes that subscriber growth will remain healthy. AT&T pays a dividend of $1.84 (5.13% yield). S&P’s target price is $41.

Technically this stock was highlighted by our Profit Scanner service, which noted the “V” bottom (sometimes called a rounding bottom) as a recent bullish event. Also note the break through a long- term bearish resistance line in March and a golden cross early in May. These are bullish events and are supported by a bullish MACD. Initial support is at the stock’s 50-day moving average at $35.52.

Buy “T” at the market with an intermediate target of $41.

T Stock Chart
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Chart Key

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