Current trend

Shares of AT&T Inc., one of the largest American telecommunications conglomerates, are correcting at 22.00.

According to statistics, in the third quarter, the corporation’s revenue rose from 29.8B dollars to 30.21B dollars, less than 30.35B dollars in the same period a year earlier, and the amount of capital expenditures – from 5.0B dollars to 5.3B dollars, confirming the management’s intention to continue expanding the company. Earnings per share (EPS) amounted to 0.60 dollars, higher than preliminary estimates of 0.57 dollars.

After the financial report pub, analysts revised their estimates of the dynamics of the issuer’s securities. Thus, experts from Oppenheimer Holdings Inc. raised their target price from 23.00 to 24.00, maintaining their Outperform rating and noting the growth in broadband subscribers, as well as considerable progress in reducing debt obligations. During the reporting period, the telecom operator attracted 403.0K new customers, and EBITDA growth in the mobile segment, where competition is extremely high in the United States, amounted to 6.0%. TD Cowen specialists agree with their colleagues’ estimates, increasing their target price from 23.00 dollars to 26.00 dollars with a Hold rating.

Support and resistance

On the daily chart, the trading instrument is moving below the resistance line of the downwards channel with dynamic boundaries of 22.00–21.00.

Technical indicators recently gave a buy signal: the EMA fluctuation range on the Alligator indicator is expanding in the direction of growth, and the AO histogram is forming correction bars above the transition level.

Resistance levels: 22.40, 24.40.

Support levels: 21.10, 19.30.

Trading tips

Long positions may be opened after the price rises and consolidates above 22.40, with the target at 24.40. Stop loss is above the current price of 21.70. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 21.10, with the target at 19.30. Stop loss is around 22.00.