In our previous report on May 28, 2011 ($31.29), we suggested that AT&T had built a large bullish duplex horizontal formation (dashed lines) and that this base supports higher targets.
Subsequently, the stock moved into a horizontal trading range between $27 and $32 (dotted lines). Recent price action to $36.21 (A) signalled a breakout from the most recent trading range toward higher targets.
Some weakness may occur toward about $32.50, but only a decline below about $31.50 would be negative.
Point & Figure measurements provide targets of $37 and $43. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com