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AT&T, Verizon Stock Alert: Trading Telecom Amid 5G Rollout Delay

AT&T and Verizon stocks have gotten off to a strong start this year, rewarding investors amid their delayed rollout of 5G.

AT&T  (T) - Get AT&T Inc. Report and Verizon  (VZ) - Get Verizon Communications Inc. Report stocks have gotten off to a hot start this year, up 8% and 4.5%, respectively.

The rallies come even as headlines continue to hit that the 5G rollout will be delayed. Of course, AT&T's bullish business update certainly helped. 

While some are talking about a great multi-year investment opportunity, others have expressed how a 5G rollout could cause a ripple effect.

For example, airlines argue that it could result in delayed flights.

Earlier this week, AT&T and Verizon agreed to delay their 5G rollouts, but it hasn’t seemed to weigh on the stocks.

Let’s look at the charts.

Trading AT&T Stock

Weekly chart of AT&T stock.

Weekly chart of AT&T stock.

A few weeks ago I took a look at AT&T stock. After getting crushed for most of 2021, I ask if AT&T had just bottomed on Dec. 16.

In fact, that was the bottom and the stock has been on fire since, rallying more than 20% from last month’s low.

Amid the rebound, AT&T has reclaimed the 2020 low near $26 and has climbed back into its prior support zone.

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While the stock is almost breaking out of that zone, it’s running into its weekly VWAP measure and the underside of prior uptrend support (purple line).

If AT&T stock can clear these levels near $27, then we could see a quick move up to the $27.75 to $28 area, where AT&T currently finds its 50-day moving average.

Above that and it’s possible that $30-plus is in play.

On the downside, I would like to see AT&T avoid making new lows. It can do that by holding up over its 21-week moving average, as well as some of its short-term moving averages, like the 10-day, 21-day and 50-day.

Trading Verizon Stock

Weekly chart of Verizon stock.

Weekly chart of Verizon stock.

Interestingly, I also looked at Verizon recently, as we sized up the five worst-performing Dow stocks at the end of 2021.

Verizon held the $52 area we were watching and is now pushing higher.

Be careful though, as the stock is approaching its 50-week moving average and weekly VWAP measure. 

If the stock can clear this level, well as $56, Verizon stock could be looking at a larger move up to the $60 to $62 area.

On the downside, let’s see if shares can stay above $53.75. Below that mark puts $52 back in play, followed by $50.