Don't agree but following is an interesting contrary opinion on where T is heading!
. AT&T: The Party's Over (T)
Thursday, April 1, 1999
Option investor Bernie Schaeffer says the party's over for
AT&T (T), at least for the time being. Stock in the telecom
giant peaked on February 3 and fell more than 13% since then
despite resistance from its 10-day and 20-day moving
averages. These trendlines crossed on February 15, a bearish
sign to Schaeffer. He also sees potential options-related
resistance at the 85 and 90 strike prices, which he notes
have accumulated "heavy amounts of front-month call open
interest."
AT&T is also lagging the overall market. Schaeffer tracks
the stock's daily relative strength and compares it against
the S&P 500. He sees no end in sight to a downtrend in this
ratio that began in February and has been capped by its
declining 20-day moving average ever since.
"Despite the deteriorating technical backdrop for the
shares, analysts remain bullish on the stock," Schaeffer
says. He points out that 17 of 25 analysts tracking AT&T for
Zacks give it a "buy" rating, and he notes this leaves scant
room for upgrades to boost the stock. Schaeffer recently
recommended buying the July 85 put (TSQ) on AT&T.
So, does the recommended July 85 put look like a short term profit opportunity ???
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