NEW YORK (TheStreet) -- Shares of AT&T  (T) are in breakout mode today after Barclays upgraded the stock and raised its price target. The upgrade drove the stock to a powerful opening gap that lifted AT&T past a very heavy resistance zone.

With today's 3% ramp, the stock is well into new 2015 high territory, leaving behind what will likely form a solid long term support area near $35.50. AT&T now has a very bullish setup and is a buy on weakness.

Back in mid-April, AT&T executed a perfect retest of its January 2015 low of $32.40. A week later, the stock exploded to the upside on extremely heavy trade following its first-quarter earnings report. This powerful momentum surge lifted shares back up to their initial 2015 peak, but the stock was unable to move past the $35 area.

AT&T suffered a steep pullback in early May after its earnings-inspired rally was rejected near the February high. Later in the month, after falling just shy of filling the huge April 23 earnings gap, the stock mounted another rally. Again the $35 area held, but the aftermath this time included a shallow low-volume pullback. A tight consolidation began while shares remained above the 200-day moving average. This pattern took on an even more bullish look as the 50-day moving average turned sharply higher this month.

The breakout move today has left behind layers of support near the highs of this consolidation. The support zone includes the initial February high of $35 at the lower band and the initial June peak of $35.60 at the upper band. In between lies the April and May highs as well as this morning's opening gap. If needed, this zone will provide very solid support. A dip down to this area will provide a very low-risk buying opportunity for patient bulls.

On the upside, AT&T is bumping up against heavy supply near its October/November highs at $36.15. Considering the stock is now up 5.5% from last week's low, a bit of back-and-forth action may be needed before this level is cleared. Once through, AT&T will be on course for a retest of its 2014 highs of $37.50.

At the time of publication, Morrow was long AT&T.

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