T closes above its opening price after recovering from early selling pressure
AT&T Inc. (T) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, T finished the week 5.55% higher at 29.88 after edging higher $0.11 (0.37%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 29.88 marks the highest recorded closing price since May 1st. Trading up to $0.36 lower after the open, AT&T managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, T gained 4.03% on the following trading day. 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 May 22, 2020):
Friday's trading range has been $0.49 (1.65%), that's below the last trading month's daily average range of $0.70. 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 28.90 and 30.06 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man.
The stock managed to close above the 50-day moving average at 29.86 for the first time since February 21st.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 30.06 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 28.90 where further sell stops could get triggered. As prices are trading close to May's high at 30.79, upside momentum might accelerate should the share mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for AT&T. Out of 87 times, T closed lower 58.62% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.87% with an average market move of -0.31%.