Tuesday, August 24, 2010

T Watch

Telcom company AT&T (T) is showing bull phase on the fast stochastic with a rise that has covered 2,1% intraday. The less volatile signals remain in bear phase.
T $26.70

The price has been marking time since late 2008, fluctating mainly between $24 and $27.50 (with several overshoots of the range along the way).

Most recently, the stock rose from $23.78 in late May up to $27.39 on Aug. 18 before pulling back. If the price exceeds the August high, then it will have set a higher low followed by a higher high, by definition an uptrend.

The key level today is the 20-day simple moving average, at $26.46. If T is able to close above that level,and then trade entirely above the average on Wednesday, that would be a strong indication that the uptrend was coming back into force.

The parabolic sar, Person's Proprietary Signal (pps) and the macd have all been in bear phase for three days. The fast stochastic has made a strong push past the 20-line line, reach beyond 40. However, it is a very volatile indicator and could just as well reverse in the next day or two and drop back below 20, negating the bull signal.

On the Person's chart, the price is stalling at the midline, $26.72.

Person's Table
ppspps openupper pivotlower pivot
T $26.80 aug20 $27.12 +1.6% $26.06 -2.4%

Reversal Levels
  • $28.73, +7.6% (earlier swing high)
  • $27.39, +2.6% (swing high)
  • $26.20 <== You are here.
  • $26.63, -0.3% (20-day ma)
  • $26.20, -1.9% (swing low)
Bottom line: I like T as a bull play for the upside potential before it hits resistance. I'll like it better if it opens and closes above the 20-day moving average.
    Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.
    • psar - Parabolic Stop and Reverse
    • adx - Average Directional Index
    • pps - Person's Proprietary Signal
    • ma20 - 20-day moving average
    • macd - Moving Average Convergence-Divergence
    • sto - Fast Stochastic
    About the glance: The colors indicate the state of each signal.
    • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
    • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
    • psar, pps, macd: green for bull mode, red for bear
    • sto: green for overbought, red for oversold, yellow for the neutral zone.
    • sto zone: green for bull phase, red for bear phase.

    No comments:

    Post a Comment