Sunday, November 13, 2011 5:40:52 PM
ATT (T) -
http://stockpickr.com/5-breakout-trades-avoid-eurozone-fallout.html
>>> Last up this week is $174 billion telecom company AT&T (T), one of TheStreet Ratings' top-rated telecom stocks. AT&T has had its share prices stifled in 2011 by concerns over its troubled merger plans with T-Mobile. Now that the outcome is slightly clearer, so are AT&T’s technicals.
Like the rest of the market, AT&T bottomed at the start of August, but since then, shares have been forming an ascending triangle setup. Simply put, an ascending triangle is a formation that’s characterized by a horizontal resistance level acting as a price ceiling for AT&T at $29.50, with uptrending support below. As shares bounce in between those two technically significant price levels, they’re getting squeezed closer to a breakout above that resistance level. The breakout above $29.50 resistance is the buy signal to watch for.
14-day RSI has been providing bullish confirmation for this setup as shares make their way up to test resistance. While that adds to the likelihood of an upside breakout, the trading signal still needs to be the price breakout itself. If you take this trade, I’d recommend a protective stop just below the 200-day moving average.
To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr. <<<
http://stockpickr.com/5-breakout-trades-avoid-eurozone-fallout.html
>>> Last up this week is $174 billion telecom company AT&T (T), one of TheStreet Ratings' top-rated telecom stocks. AT&T has had its share prices stifled in 2011 by concerns over its troubled merger plans with T-Mobile. Now that the outcome is slightly clearer, so are AT&T’s technicals.
Like the rest of the market, AT&T bottomed at the start of August, but since then, shares have been forming an ascending triangle setup. Simply put, an ascending triangle is a formation that’s characterized by a horizontal resistance level acting as a price ceiling for AT&T at $29.50, with uptrending support below. As shares bounce in between those two technically significant price levels, they’re getting squeezed closer to a breakout above that resistance level. The breakout above $29.50 resistance is the buy signal to watch for.
14-day RSI has been providing bullish confirmation for this setup as shares make their way up to test resistance. While that adds to the likelihood of an upside breakout, the trading signal still needs to be the price breakout itself. If you take this trade, I’d recommend a protective stop just below the 200-day moving average.
To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr. <<<
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