AT&T (T) has struggled and made missteps in the past but we want to be forward looking. The company is scheduled to report earnings before the opening of trading Thursday, so let’s check out the charts to see if there can be some capital gains on top of a nice dividend.
In the daily bar chart of T, below, we can see that the shares have made a large bottom pattern the past 12 months. This bottom becomes more noticeable if you draw a “neckline” across the $21.50 level. We can see a low December and then a big retest in March. Prices proceed to make higher lows in June and July. The shares are trading above the rising 50-day moving average line and above the bottoming 200-day line.
The trading volume has decreased from April but the On-Balance-Volume (OBV) line shows a rise from December telling us that buyers of T have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line.