A Good Connection with AT&T
by Sam Collins 01/14/09
AT&T Inc. (T) -- This major provider of telecommunications services to consumers and businesses in the United States and internationally has fallen from a high of almost $43 to under $22 in a little over a year.
More Trader Alerts
On Nov. 26, with T at $28, the Chart of the Day said, "Now T is showing signs of a bottom, with a buy signal from our in-house Collins-Bollinger Reversal (CBR) indicator, a buy from the stochastic indicator, and a close above the 20- and 50-day moving averages."
The stock ran to $31 before profit-taking drove it down to $26 and a new CBR buy signal. Note the upward arching stochastic that is just shy of a buy signal.
The target for a "telephone trade" is $32. Longer-term buyers may want to add T to their investment-grade list of holdings.
Get Sam Collins' Daily Trader's Alert e-mailed straight to your inbox each morning before the opening bell absolutely FREE!
In addition to getting instant access to his Trade of the Day, you'll also receive, in the same e-mail, his Daily Market Outlook so you can start your day off right by positioning yourself for profits!
Click here today to sign up today for Sam's FREE Daily Trader's Alert!
Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.
More By This Expert
Don't Get Burned by the Market
Investors who try to anticipate the market's next move may get burned. Your best course of action here is to be patient.
Leverage a Bet on the Nasdaq 100
The ProShares Ultra QQQ (QLD), which delivers twice the daily performance of the Nasdaq 100, hit a new 18-month high this week, and doesn't appear to be stopping.
The market will eventually break to new highs, but it will likely remain within the current narrow zone of support for several more months.
An 'Ultra' Risky Bet on the Financials
If you have the stomach for a high-risk trade that could pay out big, now is the time to buy the ProShares Ultra Financials (UYG).
2 Sectors That Might Keep the Market Afloat
If technology and financial stocks can break through major technical resistance, the market could continue to go up for several more days.
