AT&T continues to struggle with a 9% decline so far this year, while T-Mobile continues to trade quite well, up 22.5% so far this year.
Think this is bad? Check out this stat: AT&T stock is down 38.8% from its 52-week high, while T-Mobile stock is down just 3.3% from its all-time high.
Investors can argue until they’re blue in the face, but in the stock market, only one thing is paid, and that’s price. Simply put, stocks either go up or down.
The juicy 6.5% dividend yield at AT&T is good, but at what cost? He lacks momentum in business and in the rankings.
The AT&T stock problem
AT&T shares are working on their third straight weekly decline and their eighth weekly decline in the last 10 weeks.
After the $18 level gave way, that was the line in the sand that told bullish traders to reverse their position and bail out. Now below all of its key moving averages, AT&T stock is heading toward a multi-year low of $16.62.
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Despite how terrible the graphics look, this can be reasonable level of risk/reward for interested buyers. This is especially true if AT&T falls below that measure, makes a new low, and then recovers to $16.62.
If it does, then we have a level to measure our risk against: the new 52-week low.
However, this is not a healthy chart. The only momentum it has is bearish, and the market is clearly voting for the telecom stocks it likes, which is T-Mobile.
T-Mobile Stock Trading
As we look at the charts for T-Mobile stock, notice how the trend is completely different. It is marking a series of higher lows and continues to raise its 10-week and 21-week moving averages.
Recently, T-Mobile started to struggle with the $147.50 to $148 area and has been rejected from that area for four straight weeks.
It’s still early in the week, but today’s reaction to the 10-week moving average is good. Specifically, however, buyers may be interested in T-Mobile stock in the $139 to $141 zone.
In this area we find a large breakout zone as well as the 10-week and 50-day moving averages.
If these measures hold, the trend remains intact and the bulls could be around for a long time. On the upside, look for $147.50 to $148 as resistance, but specifically $150-plus is what the bulls want to see.