AT&T And Verizon Shares Drop Below Support: Now What?
The drop in the market comes from tensions between countries with major telecommunications companies.
AT&T was down 2.32% at $25.43 and Verizon was down 1.62% at $51.33 at the close.
AT&T Daily Chart Analysis
- AT&T looks to have broken below support in what technical traders call a sideways channel pattern.
- Support was found near the $26.50 level multiple times in the past, but the price has fallen below this level. If the stock cannot cross back above this level in the near future, it may turn into a resistance area in the longer term future.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock’s sentiment has been bearish.
Verizon Daily Chart Analysis
- Verizon trades in a similar situation as AT&T and recently broke below a support level in a sideways channel..
- The $53 mark is the support line that Verizon broke below. If this support line becomes resistance, it is possible a lower push follows.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing some bearish sentiment.
Bulls in either of these stocks are looking to see them bounce back and cross back above support again. Then back in the channel start to form higher lows and head toward the resistance levels on the charts.
Bears in either stock want to see the support lines begin to hold as resistance. This could signal that the stock (or stocks) may be ready for a further bearish push. Bears seem to be in control of both stocks as they are both trading below their moving averages and have broken support.
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