T-Mobile Attempts a BreakoutT-Mobile US has chopped sideways after gapping higher. Now it may be ready to break out.
TMUS jumped to $115 for the first time ever on August 7 after its quarterly results. The shares inched slightly higher by early September before pulling back with the rest of the market.
This consolidation now resembles a bullish flag or high basing pattern. TMUS has recently pushed against the same downward-sloping trendline that held it in check during this period. The mobile-phone stock closed above it yesterday, creating the potential for a bullish breakout.
To the downside are two potential sources of support. One’s the 50-day simple moving average (SMA). Another is the $108 area. Notice how TMUS double-bottomed there on September 18 and 24. That was also near its pre-gap price zone.
Fundamentally, TMUS is now a synergy/integration story. If it successfully digests Sprint, investors could view it as an inexpensive growth stock.
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