Home Stock Markets AT&T Stock Chart: Buy or Sell After Cash-Flow Outlook Disappoints?

AT&T Stock Chart: Buy or Sell After Cash-Flow Outlook Disappoints?

by WOOWinvest
0 comment
AT&T Stock Chart: Buy or Sell After Cash-Flow Outlook Disappoints?


AT&T (T) – Get AT&T Inc. report Can’t seem to rest. The stock fell more than 7% on Thursday after the telecom giant reported earnings.

On the upside, shares have bounced back nicely from their 11% slump. Still, this is not what the bulls were hoping for.

The company posted a second-quarter profit and reiterated its full-year profit guidance. AT&T even raised its mobile revenue guidance, now calling for 4.5% to 5% growth.

So what went wrong?

In that guidance, AT&T also cut its full-year free cash flow guidance by $2 billion to about $14 billion. For a company so reliant on its cash flow and what it means for its dividend, this isn’t news that bulls want to hear.

As the company’s spin-off, Warner Bros. Discovery, the mood is especially bad (WBD) – Get Warner Bros. Discovery Inc. Reporthas been doing very badly since their split on April 11.

Shares of Warner Bros. Discovery have fallen more than 40% since then, but as far as AT&T stock is concerned, there’s actually a silver lining on the charts. Let’s see it.

Trade AT&T Stock

A daily chart of AT&T stock.

scroll to continue

What does the split date (April 11) mean relative to today’s AT&T stock? It left a large unfilled gap down to $18.30.

With this morning’s dip, that gap has now been filled. Not only did the stock fill the gap, but it also bounced off uptrend support (blue line).

More importantly, take a look at where the stock opened on April 11 and where it became support after Warner Bros. found a spinoff. That level would be $18.80, an important support in April, May and June.

In other words, AT&T stock finally filled the gap down to $18.30, reclaimed important post-split support at $18.85, and is now looking for further direction.

If the stock declines at $18.80 as support, the post-earnings low will technically revisit around $18.24. Below this value and a low of $17 is likely.

On the upside, let’s see if the stock can reclaim the 200-day moving average. If it can do that, AT&T stock can start filling the gap, recovering to $20.40.

Along the way, some important areas could include the 50% to 61.8% retracement zone between $19.32 and $19.57, and the descending 10-day moving average.

While investors are generally accustomed to reducing volatility in stocks like AT&T, some traders can take comfort in the way it trades because it has shown very technical price action lately.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy