AT&T (T - Get Report), one of TheStreet Ratings' top-rated telecom stocks, is consolidating right now too. But unlike the case with Citigroup, AT&T's consolidation is coming after much more directional trading.
In that sort of a situation, a consolidation is more a reprieve to avoid becoming overbought than it is a battle between buyers and sellers. Buyers have been in clear control of AT&T's shares since the company announced its intentions to acquire T-Mobile at the end of March.
Traders should be watching out for a break above AT&T's current $32 resistance level. When that happens, a reasonable price target should be just under $33.