About a week ago the 50 DMA crossed below the 200 DMA and T has been dropping ever since. Now T is trading below the lower Bollinger Band which is at $33.48. At $33.33, only 15 cents under the band, it is not yet a panic and volume is below average so don't rush out and sell. However a stop loss at $32.96 might be a good idea. Bollinger theory holds that, when the bands get close together, a breakout up or down is indicated. Often the initial breakout is swiftly reversed and a breakout occurs in the opposite direction. My point is, AT&T should be watched very closely for the rest of the year. A month ago I predicted a flat December and that has certainly occurred. I also predicted a jump to $40 starting in February. It now looks as if that might start in January.
It looks like the breakout is here. We are on our way to $40. Get in early and be aware that there will be pull backs along the way. The upper Bollinger Band is $34.50. Conservative investors may want to just buy call options at this time and wait for the real breakout.
The last couple of days of 2012 are going to smack T down but good unless the fiscal cliff is avoided. This could drop a couple of more $$ by New Years Day. Nobody wants to pay a 40% dividend tax. The rest of the stuff (DMA's,etc.) is irrelevant right now until the cliff issue is settled.
There is only one more trading day after today and not much is happening. Volume is normal and trading is within a 30 cent range. I don't believe much in "the cliff". We pretty much went over that on November 6th.
Well, if no one else is watching the chart, let me report that T dropped as low as $33.26 and volume remains low. However there is a report that insider trading volume is running high. Does anyone know where I can find out if they are buying or selling?