AT&T Posts Q2 Beat: A Technical Analysis

AT&T Inc. T shares moved higher Thursday after the company reported better-than-expected earnings. The company reported second-quarter earnings per share of 89 cents, beating the 79-cent-per-share estimate. The company reported sales of $44.05 billion, beating the estimate of $42.64 billion.

AT&T Daily Chart Analysis

• Shares have been trading in a sideways channel and were trading along a higher low trendline before breaking below the trendline and heading back toward support.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating the sentiment in the stock is bearish.
• Each of these moving averages may hold as an area of resistance in the future.

Key AT&T Levels To Watch

• The stock looked to be trading within an ascending triangle pattern before falling below the trendline. Now the stock trades within a sideways channel.
• Resistance may be found near the $32 level, as this is an area where the stock struggled to cross above. The $26.50 level held as support in the past and the stock may find support near this area again in the future.
• The Relative Strength Index (RSI) sits at 34 and has been hanging near the oversold area for the past few weeks. The stock could continue to fall if the RSI can reach the oversold area.

What’s Next For AT&T?

Bulls would like to see the stock bounce and start heading higher. Bulls would like to see the stock cross back above the higher low trendline and continue forming higher lows. Bulls would like to see the stock eventually cross above the $32 mark.

Bearish traders would like to see the stock continue to fall and break below the $26.50 support. If the stock is able to cross below this support level it may see a further bearish push. Bears would also like to see the stock continue to trade below the moving averages.