Bullish on AT&T (NYSE: T)

AT&T Inc. (T-N28.85-0.30-1.03%) declined from $40.70 (U.S.) to $20.90 in 2008 (A-B) rallied and then settled into a trading range between $23.50 and $28 (dashed lines). The recent rise to $29.43 (C) signalled the breakout and the start of a new major up-leg. The stock has traded between $27.50 and $29.50 for the past three months (dotted lines); a move above $30 would confirm the resumption of the up-trend. Only a decline below about $27 would be negative.

Point & Figure measurements provide initial targets of $39 and $43. The large area of accumulation (dashed lines) supports higher targets.

Ron Meisels is a contributor to the www.NA-marketletter.com website. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.