Last up today is telco giant
(T - Get Report)
, a stock that's forming the same uptrending channel as AVB. While AT&T's channel isn't as well tested as AVB's was (it only has bounced five times, vs. nine for AvalonBay), it's still a tradable pattern.
Right now, AT&T is testing trend line support, providing investors with an optimal entry opportunity. But it's critical to wait for the bounce in T before being a buyer. That's because, ultimately, support levels do fail, and when they do you don't want to be left holding the bag. Waiting for a bounce may cost you a couple of points, but it'll indicate that T can still catch a bid at support.
>>7 High-Yield Stocks With Bullish Price Trends
If you decide to take the AT&T trade, I'd recommend placing a protective stop just below the
50-day moving average
To see this week's trades in action, check out the
Technical Setups for the Week portfolio
-- Written by Jonas Elmerraji in Baltimore.
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