A day after the Fed meeting has stocks in a mixed place — while many opened higher, plenty of them have already rolled over.
Shares are up more than 6% so far on the day and are just a hair off the session. The rally comes on the back of an upgrade from Morgan Stanley.
The analysts upped their rating to overweight from equal weight, although cut their price target $4 a share to $28.
Still, if AT&T stock can climb to this level, it will represent a gain of more than 26% from Wednesday’s close.
That’s even amid some issues from Congress.
The upgrade also has some traders asking if it will act as a catalyst to begin the bottoming process in the stock.
It’s been a rough ride for AT&T. Not only has it fallen in the prior five sessions and in seven of the last eight days, but it fell in nine of the prior 10 weeks coming into this week.
Additionally, it’s fallen in seven straight months, as bulls hope to see AT&T reverse course in December.
Trading AT&T Stock
It has been a brutal stretch for AT&T stock, there’s simply no other way to put it.
The decline fits the stock market’s definition of a falling knife.
On Wednesday, AT&T undercut this month’s low, but did so with bullish divergence on the RSI reading (bottom of the chart).
That alone may not have been enough to get long this stock, but it’s gap-and-go back above the prior month’s low at $22.55 was.
Now up more than $1 a share from the November low and AT&T stock is trying to rally up through the 10-day and 21-day moving averages.
If it can continue higher, I want to see if it can reach the 50-day moving average and the prior trend support level (blue line).
In the longer term, a move above these two measures puts the prior 2020 lows on the table, near $26.
On the downside, let’s see if the 10-day moving average — which has been resistance for months now — can turn to support. If it does, there will be change in tune for AT&T stock.