AT&T (T) Ended A Cycle Possible Corrective Bounce Ahead

AT&T Inc. (T) is an American multinational telecommunications holding company headquartered in Dallas, Texas. It is the world’s largest telecommunications company by revenue and the third-largest provider of mobile telephone services in the U.S.

T Monthly Chart Septembre 2023

T Monthly Chart Septiembre 2023

In the monthly chart above, we can see that AT&T shares finished an all-time high with a price of $45.23. Since the beginning of 1999, the value has held a downtrend and we are looking to end this correction. Using the Elliott Wave Principle, a double correction structure (w), (x) and (y) can be clearly seen. From the peak, we have 3 waves in a flat structure that ends wave (w) at $14.23. Then we have another flat structure that built a wave (x) ending in the value of $33.33.

The last leg of the double correction is the wave (y). We have already completed wave a and b, and we are developing wave c as an ending diagonal structure. The market has already reached the blue box in the $8.58 – $16.75 area. Last update in April 23, we suggested that with the market conditions and the incomplete structure, the price should drop below $14.23 wave (w) low. Currently, the price action has broken the low confirming the double correction structure of wave ((II)).

T Weekly Chart Septembre 2023

T Weekly Chart Septiembre 2023

On the weekly chart, we can see in more detail the structure of the wave (y). Wave a in red made a leading diagonal that ended at $20.21. Then it bounced in 3 waves ending wave b at $29.96 to continue sharply lower. Wave c has taken the form of an ending diagonal and it needs 3 more waves to the downside.

Looks like the first swing as wave (A) has ended at $13.43 and wave (B) could have started. Therefore, we expect to see a bounce higher in 3, 7 or 11 swings without breaking $21.53 wave ((4)) high to complete wave (B) before resuming lower in wave (C). If the price action breaks below $13.43, then the wave 5 of (A) will be extended and we should 5 swings more lower from $16.23 high to finish just wave (A) before a bounce in wave (B).

Source: https://elliottwave-forecast.com/stock-market/t-ended-cycle-possible-bounce-ahead/