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.
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