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AT&T Takes a Nose Dive


A regular DecisionPoint webinar viewer and reader emailed me and suggested I take a look at AT&T because as he stated, "ouch". It was definitely a rough day for AT&T and what happened today has some very interesting implications.

Price dropped almost 2% today. It came right after the negative divergence materialized between price tops and OBV tops. It also came after two unsuccessful tests of overhead resistance. The Price Momentum Oscillator (PMO) triggered a SELL signal as it crossed below its signal line today and also pierced the 20-EMA. Optimistically, price could find support at $40.50, but given the location of the PMO SELL signal and declining SCTR, I suspect it will drop much further.

The weekly chart could be positive given the rising PMO, but noting that price turned down at all-time highs after an unsuccessful test of resistance is a problem. The long-term implications could mean a move all the way down to $36, but I'd need to see the weekly PMO at least top and have a crossover SELL signal before I got that pessimistic. At this point, a move to $40.50, suggested by daily chart horizontal support seems likely.

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Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin

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Erin Swenlin
About the author: helped create and manage the website alongside her father, Carl Swenlin. Together, Erin and Carl launched the DecisionPoint daily blog in 2009. She hosts the MarketWatchers LIVE web show at, and is also a Member of the CMT Association. Learn More
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