Why Did AT&T Stock Jump Higher Thursday

AT&T Inc. T shares were trading higher Thursday after Morgan Stanley upgraded the stock from Equal-Weight to an Overweight rating and lowered the price target from $32 to $28. The stock was trending on multiple social media platforms Thursday morning.

AT&T was up 7.19% at $23.77 Thursday afternoon at publication.

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AT&T Daily Chart Analysis

• Shares have recently broken support in a sideways channel. Support in this channel was found near the $26.50 level, while the stock has held as resistance near the $32 level. If the price stays below the $26.50 level this area might become an area of resistance in the future.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) jumped higher Thursday and now sits at 49 on the indicator. This shows many buyers moved into the stock and the amount of buying pressure is now almost equal to the amount of selling pressure.

What’s Next For AT&T?

AT&T falling below support is a somewhat bearish sign for the long-term future. Bears look like they have been in control since the support break as the price is now below support and both moving averages. Bears are looking to see the stock stay below the moving averages and hold below the $26.50 area for a possible further bearish push in the future. Bulls are looking to see the stock recover back above this level and begin to form higher lows toward the resistance level and are hoping for a resistance break later in the future.

Photo: Courtesy AT&T