One of the leading stocks in the mobile telecom sector is AT&T Inc (T), which has been trending lower since it peaked last April at $39 a share. Stocks that continuously make lower highs on the charts will generally signal lower prices ahead. Currently, the stock trades around $32.44 a share, so it is easy to see how further downside should be anticipated.
Technically Weak
AT&T is also trading below the daily chart 50-day and 200-day moving averages, which puts the stock price in a weak technical position. The saving grace for the stock is that there will be a level where the institutional money will step in and support the stock, but that level is lower according to the charts. Traders and investors should wait for the $29.90 level to be reached before stepping in and buying AT&T stock. Recently, the company has come under competitive pricing pressure by other mobile telecom companies such as T-Mobile US, Inc. (TMUS), Sprint Corporation (S) and Verizon Communications Inc. (VZ). 