T closes above its opening price after recovering from early selling pressure
AT&T Inc. (T) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
T ended the week -1.9% lower at 33.65 after gaining $0.19 (0.57%) today, slightly outperforming the S&P 500 (0.46%). Trading up to $0.15 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, T actually lost -0.89% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (T as at Jul 12, 2019):
Friday's trading range has been $0.28 (0.84%), that's slightly below the last trading month's daily average range of $0.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for T.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle.
Prices are trading close to the key technical support level at 33.37 (S1). Prices are trading close to the key technical resistance level at 33.90 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 34.02 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 33.26 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for AT&T. Out of 701 times, T closed higher 54.35% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 50.78% with an average market move of 0.08%.