Shares of AT&T (T) - Get Report ended Thursday with its sixth straight gain. This impressive run has carried the stock over 3.75% higher from the June low. On Tuesday, AT&T began to pierce heavy resistance near the old highs and, as the rally continued into yesterday, has left behind layers of strong support.

In the near term, AT&T investors should view this week's action very positively.

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Shortly after peaking just below $40 in late March, AT&T fell into a healthy consolidation pattern. The stock drifted sideways in April but gave back little ground as key support near the $37.50 area held up well. Following a bounce in late April, AT&T returned to the highs, but a lack of momentum prevented a breakout. The consolidation continued in May, and once again key support near the February highs was tested. This key zone held again as patient investors took advantage of the low-risk entry opportunity. Since the spike low on May 19, AT&T has been trending steadily higher while gaining momentum.

AT&T is setting up well for more upside now that the March/May highs have been cleared. Investors should consider the stock a buy on weakness. AT&T has a solid layer of support in place in the $39.30-to-$38.80 area. A dip back down to this area, which includes last week's high, would offer a low-risk entry opportunity. On the downside, a close back below the June low of $38.60 would drop shares back into consolidation mode.

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