SOBA trade ideas
AT&T - Short withing a rangeRanges are probably the easiest to trade, you have a ceiling and a floor all you have to do is go long or short around them. Oscillators can be a big help, take for example the Force Index, which when it got out of its bands, it predicted with high accuracy a move in the opposite direction.
I outlined two trades on the chart, along with my explanations.
On the daily chart there is a minor H&S which got its neckline broken, so two time frames align.
Long AT&T, hold till end of 2018, target $54, with 5% dividend AT&T seems to be in consolidation since mid 2012.
The recent 2 month rally broke the downward triangle upper bound. it may move down to retest the upper bound first before another rally. Anyway, current spot price of $38 is still a good price to buy since the dividend yield is a decent 5%!
A good retirement stock.
Short AT&T?- Looking at a longer term 1W chart here. Price has been ranging for the last 4 years. AT&T is approaching the top of it's range and historical resistance. The next major resistance level is at the 42.50 price level.
- Waiting 2-4 weeks to see what happens. Watching if price can break this range or if it will roll over. I think price is going to roll over but we'll see.
Short ATT? With Pleasure!AT&T is a terrible, clandestine company and they deserve to fail. This is not the reason I am shorting them, however.
Since the downgrade on 10/09 the stock seems to have trouble achieving and maintaining new levels. Furthermore, the Ichimoku cloud indicates some resistance from above at 35.63 or so, there is a lot of room to spare before we reach that level. The OBV indicator tells us that there is decreased buying pressure, and the MACD has recently crossed over. Finally the RSI confirms that this is a 'sweet spot' to make a trade.
For intermediary profit targets consider the two levels drawn from the lows going back to early October at 33.18 and 33.00, but note that after that, its smooth sailing through the vacuum area to the high of 10/02 at around 32.61. Stop losses may be set analogously using the relative high at 33.73, the Ichimoku cloud at 33.63, or if it crosses over the line segment forming the upper bound of the wedge.
AT&T: Expecting To See Very Strong Selling From This Level !!Friends
AT&T looks good for a short, anyone who's got me on snapchat has heard me excited about this stock all weekend. I think the short from here will be aggressive and merciless.
Best of luck
Tom
--For latest ideas, stock picks and opinions, please add me on my Snapchat: T_Killick
Bullish Crossover Could Send AT&T to 42.50Breaking through this wedge could send AT&T's stock to about 38.50 in the short-term and about 42.50 in the long-term. The 50 day MA is in the process of crossing over the 100 day MA, which could be just what this stock needs to push the price through this wedge pattern. The last time this pattern was set up in mid 2010, the price jumped 15.68% from 25.50 to 29.50 in just a few months. The stock continued to climb to 38.00 in the coming years.