Ma Bell’s loss is our gain. Here’s how you can trade AT&T (T).
Discussed in this article: AT&T ( $T )
I want to talk about AT&T ( $T AT&T Inc. ). I think this is a good buying opportunity. The company reported first quarter earnings that the street didn’t like, down about five percent, but where did the stock fall to? It fell to the 50-day moving average; I’m liking the way this looks.
You can see this stock kind of formed this little bowl pattern with a big ole hole in the bowl, right there. Nice base, the stock comes down to offer what I think is a really, really nice entry point. This stock has not been going up long enough to really say, “Okay, my gosh this is a momentum stock, you got to keep buying the highs.” No, that’s not working.
In this case this stock did poke above this last high here, but you can’t buy a stock when it’s moving up like this you have to wait for the stock to pullback. Others that are much stronger, that just seem to be going from lower left to upper right, that’s a different deal; you just kind of got to buy them and hold them and just go on for the ride, ride them until they buck you off.
Here AT&T ( $T AT&T Inc. ) is just offering a really nice low-risk entry, stocks already had a big correction so even if the Dow pulls back a little bit more you’re probably not going to see a whole bunch more downside on AT&T ( $T AT&T Inc. ) here. So I think we’ve got a really nice floor, right around $36.63 is the low here, I’d say just a little bit below that, I doubt this stock is going to fall lower. I hope that trade works for you.