T bull signals

The telcom company T rose briskly today, covering 1.8% low to high. The chart shows simultaneous psar and pps bull signals. The macd has been in bull mode since Feb. 9 with no accompanying price rise.

The move puts T at the top level of resistance set in February. With some resistance along the way, the stock has a shot at the $28.73 high set on Jan. 5.

You are here:

• Resistance
• $28.73, +13.6%
• $28.35, +12%
• $27.99, +10.6%
• $26.90, +6.3%
• $25.84, +2.1%
• Now $25.30
• Support
• $24.61, -2.8%
• $23.77, -6.4%

These levels show a pretty fair return even in the worst case, and the resistance compares favorable to the distance from support, giving a good risk/reward ratio.

However, the longer-term trend is sideways, since early 2009, and it is unclear whether the decline from January is part of the sideways fluctuation, or part of a directional move.

The bottom line for me is that the signals combined with a reasonably good, although not spectacular, upward move is a good reason for me to consider it for a bull play.

Abbreviations:
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic