American Tower: Old Resistance, New Support?
American Tower is the largest owner of wireless towers, and the largest member of the real-estate sector.
It’s been in a long-term uptrend thanks to the spread of wireless communications, having doubled between early 2017 and early 2019. It hit new all-time highs last summer, pulled back for half a year and now may be showing signs of a turn.
The first important pattern is the 50-day simple moving average (SMA). Notice how it held prices in check in September and November. However AMT is now trying to bounce at the same line. Is old resistance becoming new support?
Next, stochastics are oversold on the daily chart. A rebound here could help validate the 50-day SMA as support.
Third, MACD is now rising on the weekly chart. Similar crosses also signaled longer-term pivots in early 2017 and mid-2018.
Overall, AMT has struggled along with other REITS as interest rates increased. However, its business still stands to benefit from the spread of 5G networking. Is now the time for investors to revisit the longer-term growth story?
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It’s been in a long-term uptrend thanks to the spread of wireless communications, having doubled between early 2017 and early 2019. It hit new all-time highs last summer, pulled back for half a year and now may be showing signs of a turn.
The first important pattern is the 50-day simple moving average (SMA). Notice how it held prices in check in September and November. However AMT is now trying to bounce at the same line. Is old resistance becoming new support?
Next, stochastics are oversold on the daily chart. A rebound here could help validate the 50-day SMA as support.
Third, MACD is now rising on the weekly chart. Similar crosses also signaled longer-term pivots in early 2017 and mid-2018.
Overall, AMT has struggled along with other REITS as interest rates increased. However, its business still stands to benefit from the spread of 5G networking. Is now the time for investors to revisit the longer-term growth story?
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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