Five Star Stock Watch: AT&T

Being that the Dow Jones Industrial Average is hovering just beneath its all-time high, some of its components are not.

As a matter of fact, one member of the Dow Jones is actually coming dangerously close to hitting new 52-week lows.

AT&T has been working its way lower since November having already hit a new low in January and February. 

Is a new low on its way? Or is the stock ready for a rebound?

The potential answers to those questions lie in the article below.

The company: AT&T, Inc.

Ticker Symbol: T

Sector: Technology

Industry: Telecom Services

AT&T Inc. provides telecommunications services to consumers and businesses in the United States and internationally. Its wireless segment offers various wireless voice, data, text, and other services, including local wireless communications services, long-distance services, and roaming services.

See also: Five Star Stock Watch: Blackberry Limited

The company'’s wireline segment provides data services, such as switched and dedicated transport, DSL Internet access, network integration, managed Web-hosting, packet, and enterprise networking services, as well as local, interstate, and international wholesale networking capacity to other service providers.

Please take a look at the one-year chart of AT&T below with added notations:

Even though the markets were hitting new highs in November, December and are approaching highs again this week, AT&T has continued to work its way lower. Along the way, the stock has created a clear, downtrending resistance line.

This week AT&T has approached its 52-week low support near $32. A break of $32 most likely means lower prices for the stock, while a break through the downtrending resistance should mean a higher move.

See also: Five Star Stock Watch: Canadian Solar

AT&T, Inc. isn't set to release earnings until the end of April 2014.

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!