Check out this squeeze on T-Mobile – March 5, 2024
This is Scott with your Chart of the Day. I want to take a look at T-Mobile ( NASDAQ: TMUS ). I’ve got to give credit to our trading room at StockMarketMentor.com, a member asked myself and Dan Fitzpatrick about this chart, and that is what brought it to my attention.
Let’s look at today’s price action for T-Mobile ( NASDAQ: TMUS ). While the rest of the market was going down T-Mobile ( NASDAQ: TMUS ) actually popped up out of some nice type of price action and did it on higher-than-average volume.
I can bring up my handy dandy drawing tool and you can see this is definitely a stock that is trying to come out of what Dan Fitzpatrick calls a squeeze. I don’t have the Bollinger Bands on this chart right now, but I can put them on.
If I put the Bollinger Bands on, you can see how we have some tight Bollinger Bands. We have the bottom band trying to expand to the downside, and the top band trying to expand to the upside as price moves through it on higher than average volume.
That is typically what you want to look for in a squeeze. You want those tight Bollinger Bands and then you want to see that expansion as price pushes through. So I definitely think T-Mobile ( NASDAQ: TMUS ) is one to keep an eye on for some potential follow-through on this squeeze to the upside.
Typically, I like to buy close to the 8-day exponential, but you could look for a potential breakout buy right above today’s high, which is around 166.80. I’m going to set an alert right at 166.80 and look for some momentum through that pivot, coming again, on higher-than-average volume.
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