We're seeing the exact same setup in shares of AT&T (T) right now, except that T's ascending triangle isn't as far along yet.
Like GM, AT&T has been forming an ascending triangle pattern for the last month and change, bouncing in between a horizontal resistance level at $34.50 and uptrending support below shares. Even though this particular setup isn't textbook because it's coming in after a downtrend (typically, ascending triangles come after upside as with GM), the trading implications are exactly the same. We'll want to be buyers on a move above that $34.50 upside barrier.
Momentum adds some extra confidence to this trade right now: 14-day RSI has been in an uptrend since AT&T found its bottom. Since momentum is a leading indicator of price, that's a bullish signal for this setup. Even so, it's critical to wait for that $34.50 price to get taken out before putting your cash on the line. After that, consider a protective stop under the 200-day moving average.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV