T closes within previous day's range after lackluster session
AT&T Inc. (T) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
T ended the week -0.52% lower at 38.25 after losing $0.06 (-0.16%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.19 higher after the open, AT&T was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (T as at Feb 14, 2020):
Friday's trading range has been $0.36 (0.94%), that's below the last trading month's daily average range of $0.63. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for T. Prices continued to consolidate within a tight trading range between 37.85 and 38.47 where it has been caught now for the last three trading days.
After moving higher in the prior session, the share closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 37.88 (S1). After having been unable to move above 38.43 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 38.47. The last time this happened on January 10th, T lost -1.22% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 37.85 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for AT&T. Out of 201 times, T closed higher 53.73% of the time on the next trading day after the market condition occurred.