AT&T: volatility and benefit

AT&T: volatility and benefit

2021-01-26 • Dikemaskini

AT&T reports its quarterly earnings this Wednesday, at 15:30 MT time.

The consensus on expected EPS is $0.73 against $0.89 for the same quarter last year.

Looking at the weekly chart of the AT&T stock, you’d unlikely find it too stable over the long term, won’t you? On the other side, since the beginning of 2019, it has been mostly gaining: it went from $28 per share in December 2018 to almost $40 a year later. That’s exactly where it was floating around when the virus hit. It’s now back at the same $28 as three years ago, struggling to get up. Will it recover and move upwards? Very possibly: the current management of the company seems to have taken a couple of constructive steps to make sure the company does well from the financial side. In the end, some 25 years ago, the stock was just at the same price. Isn’t that a sign of stability?

ATTWeekly.png

The short-term technical layout is quite controversial. Since it came down from $31.50, this stock has never recovered the loss. Instead, it’s been going through phases of diminishing oscillation around $29. Currently, it’s in a clear consolidation at this level, and converging Moving Averages confirm that. Even with a positive report of quarterly earnings, it may require quite some effort for this stock to break from the downside gravity: the local resistance of $30 may be a good indicator for that. Nevertheless, even with a drop, it is unlikely to go lower than the tactical low of $28 – that’s the main support to watch.  

ATTH4.png

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