AT&T (T) - Get Report has spent the last three weeks in a very narrow range. This is an encouraging sign for patient investors after the stock's steep slide over the last 12 weeks. AT&T may finally be regaining its footing as November drags on.

If shares can continue to base near current levels, a low-risk entry opportunity will be at hand.

Following a powerful June rally, which lifted AT&T well into fresh 52-week high territory, the stock left behind an ugly key downside reversal on July 5. Over the next five weeks, the stock remained in a tight range just below the highs as upside momentum continued to wane. On Aug. 16, this sideways action ended with a high-volume breakdown.

Since then, AT&T has been struggling badly, and is now in the process of putting in a fourth straight lower monthly low. This damaging slide has pushed the stock to its deepest oversold reading in its moving average convergence/divergence indicator since late 2012.

As AT&T continues to base, investors should keep a close eye on the $36.50 to $35.50 area. This key support zone is marked by the October low near the upper band and the 40-week moving average near the lower band.

After an 18% to 20% decline over the last three months, AT&T will be set up well for a rebound move if the $36 area can hold.

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This article is commentary by an independent contributor. At the time of publication, the author was long T.