AT&T (T) is one of the most recognizable wireless phone carriers in the U.S. The telecom and media conglomerate has been having a better year so far than it did last year. AT&T stock was down over 16% in 2021. In 2022, shares were trading higher initially but sold off heavily after a negative earnings report. On the positive side, the stock maintains a high 4.7% annualized dividend yield in a relatively low interest rate environment. Additionally, telecom stocks are sometimes viewed as a safe haven when stock markets turn volatile. Should investors consider buying AT&T stock?
Currently, the stock market is in an uptrend which means it’s the best time to be buying stocks and to identify top contenders for your watchlist. Investors should seek out leading stocks in leading industry groups that are outperforming the market. Investors should note that AT&T can be viewed as a defensive play because of its high dividends.
Now the question is, does AT&T stock deserve a spot in your portfolio or on your watchlist? Let’s look at AT&T from a technical perspective.
AT&T Technical Analysis
AT&T stock had a rough second half of 2021. Shares attempted to breakout from a flat base with a 31.99 buy point earlier in the year. But the breakout failed in late May when share gapped below the 50-day line in heavy volume. Shares of AT&T have since fallen below their 200-day moving average as well.
The stock’s been drifting lower over the past several months. AT&T stock successfully reclaimed its 50-day and 21-day lines inn January. But after investors reacted negatively to its earnings announcement on Jan. 26, shares have fallen back below these areas of potential support.
Additionally, the stock was turned away at the 200-day line, which acted as a key area of resistance.
AT&T stock maintains a low Relative Strength Rating of only 32, which is well below the minimum of 80 for ideal growth stock contenders. The RS line measures a stock’s performance against the S&P…
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