NEW YORK (TheStreet) -- Telecom giant AT&T  (T - Get Report) is trading 1.1% lower at $34.19 on Wednesday on heavier-than-usual volume.

  • Nearest Resistance: $36
  • Nearest Support: $33.50
  • Catalyst: Merger Progress

The FCC is recommending approval of AT&T's long-pending acquisition of DirecTV  (DTV - Get Report), according to FCC Chairman Tom Wheeler. While the FCC's recommendation does come with some caveats, it also represents an important step as AT&T and DirecTV wait to clear the final regulatory hurdles before their $66 billion deal can be completed.

From a technical standpoint, AT&T has been in a well-defined uptrend going back to last December. As shares correct toward that long-term trend line support level this month, it's creating the possibility of a very attractive buying opportunity for AT&T. A bounce off of that trend line support level is the buy signal that buyers should wait for in July.

AT&T is set to report earnings on Thursday.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.