AT&T More Down Side to Come (Revised)AT&T (NYSE: T)
What is AT&T:
Is a telecommunications company that also provides mobile phone Services along with Cable and Internet Services.
JesusTrades Score:
Sell
Scale Score:
Risky (7/10)
Portfolio Hold:
1 month
Fundamental Reasoning:
Last Earning Report (Pre-COVID) T reported an earning of less revenue than last year, less EPS and and a Loss on revenue. Short interest on T has been going up since 4/20 and believe more will come in when the market takes a dump.
Telecommunications
AT&T Topping Out Short TermAT&T (NYSE: T)
What is AT&T:
Is a telecommunications company that also provides mobile phone Services along with Cable and Internet Services.
JesusTrades Score:
Sell
Scale Score:
Risky (7/10)
Portfolio Hold:
1 month
Fundamental Reasoning:
Last Earning Report (Pre-COVID) T reported an earning of less revenue than last year, less EPS and and a Loss on revenue. Short interest on T has been going up since 4/20 and believe more will come in when the market takes a dump.
CEL: $5 Short + $10 Long TargetFirst off, don't take anything I say seriously or face value as always. That being said, let us get into my insights. Looking at the fibonacci retracement for Cellcom, I think it safe to put a short target of $5 within the next upcoming weeks or month. Also, a $10 long hold position seems reasonable. Given the demand increasing in the telecom space for 5G, an expected increase in service coverage and earnings may happen. The main thing to be critical of, is the need for Cellcom to keep up with the 5G race and build technologies beyond its 4G and LTE support. It would also be interesting to see what happens as they compete against things such as SpaceX's Skynet, which may be potentially more superior of a technology.
Sprint: Triangle bullish break-out. Aiming above $15.00.Following the merger approval, Sprint hit our short term target zone of of 6.10 - 6.25 much sooner than expected as shown on the chart below:
Our attention now shifts towards a much more long term time frame, as the stock broke above its multi year Triangle on the 1W chart, with the RSI crossing above the 70.000 mark for the first time since February 2017 (RSI = 71.642).
The 1W MA50 was also crossed and with the RSI pattern resembling the 2016 run, we have formed the modelled the next Target Zone at 15.80 - 19.00.
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Sprint: On a possible bottom. Conditions for buy.Sprint posted a strong rebound yesterday as it found Support on the 4.80 - 4.70 Zone. At the moment it is still on a strong 6-month Channel Down (1W RSI = 34.548, MACD = -0.393, ADX = 48.905, Highs/Lows = -0.4078) but the conditions for a long term bullish reversal may have already started to emerge.
The strongest bullish confirmation would be a break above the 1D MA50. As you see on the chart that would coincide with a cross over of the Lower High trend line of the 6 month Channel Down (dashed line). Additionally the RSI may be repeating the bottom sequence of early 2018.
If the 1D MA50 gets crossed, we will buy targeting the 6.10 - 6.25 Zone.
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AT&T CFO signals reiterates strong guidanceAs AT&T's stock dips on the ex-dividend date today, traders may want to take advantage of the buying opportunity. Communications services are likely to be a solid sector this year with the 5g revolution coming, and comments by AT&T's CFO indicate that the company has strong execution right now.
The CFO reiterated the company's EPS guidance of 3.60-3.70, above the Street view of 3.58. He also said that AT&T is buying back more shares than expected, and that it also has exceeded its target for cost-cutting this year.
AT&T is a great stock for both growth and income, with a P/E of about 11 and a dividend yield above 5%.
Nokia a long-term recovery playNokia's stock price bombed after its last earnings report. The drop was definitely justified given its change in outlook for 2020, but the 2021 outlook still looks good. In two years, I think we see $7 per share for this stock. It could happen sooner if Nokia starts to execute better. Short-term, I see bullish divergences that suggest momentum is coming back into the stock. The Reverse RSI indicator also flashed a buy signal.
AT&T rising wedgeAT&T's valuation looks pretty good today, with a 57/100 valuation score from S&P Global Intelligence. Dividend yield currently stands at 5.5%, making this a solid stock for recession protection and a steady cash return. Analyst summary score is 8.9/10, and options activity is bullish. AT&T is in the middle of a rising wedge; buy here or pick up any dip to the bottom of the wedge. There's a fair amount of volume support below the current price, with particularly strong support around $38 per share.
TELECOM ARGENTINA SA - NYSE: $TEO On WatchAfter breaking into higher ground last week on solid volume, shares of TELECOM ARGENTINA SA - NYSE:TEO appear to be turning the tide and in the process, has recaptured its 200 DMA and now finds itself in position to perhaps start its ascent into northern territory evidenced in the Daily chart above.
With the move above its 200 DMA, we can observe that TEO now finds itself trading above all of its important moving averages 20/50/200 DMA's, which portrays a healthy technical posture.
In addition, it also appears that TEO may now find itself in the the very early innings of entering Stage II advance. While further work is required, we are placing the stock front-and-center on our radars for further monitoring moving forward with the thought process that the 19-20 and perhaps 22-24 objectives may come into play.
Thus, both investors/traders may want to continue to monitor the action in TEO closely in the days/weeks ahead for further evidence that we may just be in the early stages of its next meaningful advance into greener pastures.
GLUU at long-term trendline support - watch for bullish breakoutGlu Mobile broke above a downward trendline thanks to support from a longer-term trendline formed over the last 12 months. That support line may also push GLUU out of its downward parallel channel, in which case the price should oscillate upward ahead of earnings in late July.
Despite strong analyst ratings, earnings expectations for GLUU are .02 per share lower than reported earnings the same quarter last year, which may push the stock price below trendline support.
MOBILE TELESYSTEMS - NYSE: MBT Nears Break-OutWe've been monitoring the action in shares of MOBILE TELESYSTEMS - NYSE:MBT for a while now and it appears that the stock is starting to find buyers as it approaches a significant level in order for the stock to release into higher ground.
As we can witness from the Daily chart above, MBT presently finds itself trading above all of its important moving averages 20/50/200 DMA's, suggestive of a healthy technical picture.
However, perhaps of more importance, MBT now finds itself rapidly approaching a key inflection point at the $8.75 figure. Should the stock be capable of going topside of the level and 'Stick', we suspect that further advance is in the cards and we may just see a move into the $10-$12 zone in rapid fashion.
Thus, both investors/traders may want to keep a close eye on the action and more importantly, the noted $8.75 figure for confirmation/clues that greener pastures may be in the offing.
KSS potential breakoutKSS has seen a surge in volume over the past few sessions around the previous high, sustained interest could see this break with a target price of circa 43c if the move runs to full potential
$JSEMTN has turned technically bullish on the dailyI don't want to use this chart to give targets but merely as an illustration of what a very strong technical chart looks like. Firstly as can be seen by the price action we have seen successive higher lows and higher highs on MTN which is very much a characteristic of bullish chart. Adding to that, we have also seen all the major moving averages cross upward and above the 200 day moving average. This chart has all the characteristics in place for further upside to present itself. I would be a buyer on any dips in the MTN share price. If the stock closes below the previous high/low level of R97.00 that would be my stop loss.
VODACOM (VOD) DAILY TIMEFRAME LONGNever has there been so many multiple confluences on a single chart as this one. Firstly, price formed a head and shoulders pattern on the weekly chart, and tumbled down after the completion of the right shoulder and breach of the price below the the neckline. Secondly, prices have managed to stay under the neckline, which was a key psychological level at 14 000. You know how crazy people can be around round numbers. Also, the price is moving in a steady downtrend as depicted by the lower lows and lower highs and the descending trendline unmasks this. Price is now around the 12 000 key psychological area and the lower timeframes already show a rejection in the form of a bearish candle. I expect prices to continue going down. A fail-safe would be to wait for prices to approach the descending trendline and opening short position once clear signs are given.
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MTN DAILY TIMEFRAME LONGThis stock recently broke out of a descending trendline,and is currently retesting either the trendline itself or a support zone. I am of the opinion that t his stock will resume going up once enough buyers enter the market. Traders can possibly look to enter a long position at the 9 615 level, which rep [resents a support level.
$JSEVOD Vodacom basing for a bigger move?$JSEVOD released a decent set of results this morning in the face of a tough economic environment which we have witnessed locally for the last little while. Perhaps now with elections out the way and a gradual uptick in economic activity, this local counter could benefit from inflows into the SA inc sector of our market. This year we have seen price action contained within a tight range of R110-R122. It has formed an inverted Head & Shoulders formation with multiple bottoms around the R111-R112 area. If we see the stock break above the recent highs of the neckline around R122, we could see this stock off to the races to test the upper end of the larger channel which comes in at roughly R132- R133.
Sprint: Death Cross on 1D pointing lower.Sprint made a Death Cross on 1D last week (MA50 crossing under MA200) on bearish RSI = 38.934, MACD = -0.125, Highs/Lows = -0.1518. The same pattern has been spotted 3 times in the past, all of which resulted in massive loss in value (roughly -41.50%, -52.30% and -47.80% respectively). Assuming it follows a similar pattern, an equivalent of the last Death Cross (which was the "weakest") will pull the price down to $3.25. It is definitely not a good time for investors to enter Sprint. Traders may look to start adding shorts using the previous Lower High as stop loss.
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T did something exciting!So last night I said that AT&T was going to rally to 32.45. It was looking good with gains and natural consolidation, but it looks like it wigged out finally. it got near the 32.45 marker and then dropped to open at 31.78. We are inside my pitchfork again (unfortunately), but with the patterns we've been seeing we will most likely see a bounce back up sooner or later around 31.35. If this is correct, AT&T will most likely reach 32.45 within the month.
More to come later.
UNITI WIRELESS potential move to 81.5c $UWL, a recent IPO listing in the wireless telecommunication space has shown strength over the past few weeks with the first wave moving the stock from a 17.5c base to a 43c high (+146%) before consolidating on declining volume and running a further 60% from 42c to 67.5c, volume is again dropping off as the prior move is consolidated at circa 55c which sets up a potential third wave with a target of 81.5c (+48%)
The company have made one acquisition since listing a few months back and have recently attempted another as their strategy to become a major wireless internet provider takes shape. The company have also attracted some notable investment from industry veterans such as Philip Cornish, founder of Vodafone Au
Support at 43c (or -22%) has been prior resistance therefore becomes the SL point for this trade concept which gives the trade a risk reward ratio of 2.21