T stuck within tight trading range
AT&T Inc. (T) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
T ended Tuesday at 33.58 losing $0.13 (-0.39%) on low volume, slightly underperforming the S&P 500 (-0.34%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (T as at Jul 16, 2019):
Tuesday's trading range has been $0.21 (0.62%), that's below the last trading month's daily average range of $0.33. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for T. Prices continued to consolidate within a tight trading range between 33.39 and 33.74 where it has been caught now for the last three trading days.
Prices are trading close to the key technical resistance level at 33.74 (R1). After having been unable to move above 33.74 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 33.72. The last time this happened on July 8th, T lost -2.07% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 33.74 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 33.26 where further sell stops could get activated. With prices trading close to this year's high at 34.37, upside momentum might speed up should AT&T be able to break out to new highs for the year.
Among the three 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 700 times, T closed higher 54.29% 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 50.71% with an average market move of 0.08%.