Jim Cramer Thinks AT&T Has Found A Bottom, But What Does Technical Analysis Say?

Despite better-than-expected third-quarter financial results, AT&T Inc. T shares are trading lower on Thursday. Jim Cramer's take on the stock was that this is the bottom. Though, if unable to cross back above support again, it may not be the bottom.

AT&T was down 0.92% at $25.67 at last check Thursday.

See Also: Why Jim Cramer Is Calling The Bottom For AT&T's Stock

AT&T Daily Chart Analysis

• AT&T looks to be trying to make a bounce after breaking below support in what technical traders call a sideways channel.
• Support was found near the $26.50 level multiple times in the past, but the price has fallen below this level. The stock is looking to cross back above this level and hold it as a support level once again. If unable, the stock may see a further bearish push.
• 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.
• Each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) started to bounce back and now sits at 40. This illustrates more buyers are entering the market, although the stock still has more selling pressure overall. The increase in buying pressure suggests that the stock could be forming a bottom.

Bullish traders are hoping that the stock starts to form higher lows and can get back above the $26.50 support level. This could signal the stock has found a bottom and that it is done dropping. Bulls want to see it start moving toward the $32 support level.

Bearish traders are looking to see the stock begin to hold the $26.50 level as resistance and see the stock be unable to cross back above the level. This could signal the stock is ready to see a strong bearish push.

Photo: Courtesy AT&T