Weak technical forecast for AT&T Inc stock being downgraded to Strong Sell Candidate

The AT&T Inc stock fell by -1.65% in the last day (Monday, 19th Oct 2020) from $27.33 to $26.88. and has now fallen 9 days in a row. During the day the stock fluctuated 2.42% from a day low at $26.82 to a day high of $27.47. The price has fallen in 8 of the last 10 days and is down by -6.24% for this period. Volume has increased in the last day by 23 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 52 million shares were bought and sold for approximately $1.40 billion.

On October 05, 2020 "KeyCorp" gave "Sector Weight - Underweight" rating for T. The price target was set to $25.00.Over the last 30 days this security got 1 buy, 0 sell and 0 hold ratings.

The stock has broken the narrow and falling short-term trend down. Firstly a stronger fallrate is indicated, but false breaks and "sell-off" may occur. However, a further fall is realistic and any reactions back to the breaking point ($27.20) are considered to be a "second chance" to get out. According to the fan-theory $25.89 will represent the new bottom line of the next trend, but it is far too early to say this for certain.

There are few to no technical positive signals at the moment. The AT&T Inc stock holds sales signals from both short and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $27.62 and $28.62. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Wednesday October 07, 2020 , and it has fallen so far -6.67%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 months Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $0.65 between high and low, or 2.42%. For the last week the stock has had daily average volatility of 1.59%.

AT&T Inc is oversold on RSI14 (21). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.

AT&T Inc holds several negative signals and is within a narrow and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since last evaluation from a Sell Candidate to a Strong Sell Candidate candidate.