Current trend

Shares of AT&T Inc., one of the largest American telecommunications conglomerates, are adjusting at 18.06.

Last week, as part of the Bank of America C-Suite TMT Conference, the CFO of AT&T Inc. Pascal Desroches made a speech about the company's development plans. In particular, attention was paid to the investment program for the development of 5G networks and fiber-optic communications, to which management will allocate from 21.0 billion dollars to 22.0 billion dollars by the end of 2024. Also, Desroches stressed that over the past 5 years AT&T Inc. has invested more than 145.0 billion dollars in infrastructure modernization, and the coverage of fiber-optic network consumers has reached 27.0 million users, while by the end of 2025 their number may grow to 30.0 million. Ahead of the publication of the financial report for the second quarter, JPMorgan Chase & Co. analysts revised their estimate of a possible increase in the number of subscribers to the AT&T Inc. telephone line from 250.0 thousand to 275.0 thousand. Thus, the recommendation on the emitter's shares was maintained at the "Overweight" level, and the target price was changed to 21.0 dollars per paper.

The financial report itself will be published on July 24: analysts' current forecast assumes revenue of 30.03 billion dollars, up from 29.92 billion dollars a year earlier, and earnings per share (EPS) could be 0.5701 dollars, slightly below 0.63 dollars over the same period in 2023.

Support and resistance

On the D1 chart, the asset is still trading below the resistance line of the ascending corridor with the boundaries of 18.60-16.50.

Technical indicators have recently updated the buy signal: the range of EMAs fluctuations on the Alligator indicator has begun to expand again in the direction of growth, and the AO histogram forms new correction bars, keeping close to the transition level.

Support levels: 17.70, 16.70.

Resistance levels: 18.30, 19.50.

Trading tips

If the asset continues to grow and the price consolidates above the resistance level of 18.30, one may open long positions with the target of 19.50 and stop-loss of 17.60. Implementation time: 7 days and more.

If the asset continues to decline and the instrument consolidates below the support level of 17.70, one can open short positions with the target of 16.70 and stop-loss of 18.20.