T unable to break through key resistance level
AT&T Inc. (T) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
T ended Wednesday at 29.24 gaining $0.12 (0.41%), outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $0.42 (1.44%), that's slightly above the last trading month's daily average range of $0.40. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for T.
Unable to break through the key technical resistance level at 29.50 (R1), AT&T closed below it after spiking up to 29.54 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on September 3rd, T lost -0.57% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 28.80 where further sell stops could get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for AT&T. Out of 695 times, T closed higher 54.39% 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 seven trading days, showing a win rate of 53.09% with an average market move of 0.03%.