T-Mobile US, Inc. (TMUS) broke out above the February of the resistance and is trading at an all-time high, just two months after the completion of its merger with Sprint Corp, The hook-up reduced the number of major suppliers of telecommunications services to only three: T-Mobile, Verizon Communications Inc. (VZ) and AT&T Inc. (T). Its rivals have struggled since the agreement has been finalized, but the new landscape should allow companies to increase prices at a faster pace. The fate of the hotly contested net neutrality repeal could benefit from these questions as well, opening the door to the card, fees for high-demand services such as Netflix, Inc. (NFLX).
But not all are optimistic about the outlook for T-Mobile. In May, BofA/Merrill analyst David Barden advised Japan’s Softbank was looking to sell up to $ 20 billion in stock, resulting in a lowering of the rating of the Guggenheim. Other analysts have maintained bullish ratings, but there has been no confirmation of the sale, which could act as a great wind from the front. At this point, investors may need to wait for the company on the 23rd July, the publication of the results to get a great need to update.
TMUS’s Long-Term Chart (2007 – 2020)
T-Mobile’s long-term chart is reconstituted through a series of mergers and acquisitions, as well as accounting for changes in a parent Deutsche Telecom. He came to the public in its current version in the upper part of $20 in May 2007 and entered in a brief uptrend that topped out at $40.87. That marked the highest for the next eight years, before a steady decrease that is accelerated at the beginning of the new decade. The stock posted an all-time low at $5.52 at the time, but the increase of the impasse in the upper teens in 2011.
A successful support test in 2012 has completed a long-term double bottom reversal, setting the stage for a steady rising trend that accelerated after the company has published a 2013 reverse stock split. These impulse buys finished five points in the framework of the summit from 2007 to 2014, before 2015 breakout that has generated the good health of the purchase of the interest in the 2017 high at $68.88. The share price then eased into a rectangular trading range, refusing to bypass the buyers for the next two years.
A 2019 breakout generated multiple whipsaws throughout the year and until 2020, with the merger of the speculation of doping of the volatility. It has jumped to a new high at $ 101.35 in February and collapsed with the global markets, which lost nearly 38 points in March to 14 month low at $63.50. The subsequent reversal of the wave finished with a V-shaped pattern in the first quarter of the top on 18 May, leaving the place in a great need of backtracking which worked off overbought technical readings.
TMUS Short-Term Chart (2017 – 2020)
The first quarter, the decline has found support at the 2019 breakout level, strengthening the support at the $60, while the price action in June has completed a cup and handle pattern. The stock broke out, on Monday, the release of all time at $105.11, and is currently consolidating at new support. The breakout suggests a measured move up to$ 140, or more than 35% above the traded price, which offers excellent reward:risk because the stop loss orders may be placed relatively close to$100.
The balance volume (OBV), the accumulation-distribution indicator equaled bullish price action since the low in November 2017. He turned sharply higher in July 2019, a few months after the price of escape, and has continued to post higher highs and higher low since that time. Likewise, OBV is still positioned under the February peak and has not confirmed the escape, increasing the potential for a final fall, which could offer a low-risk entry near the 50-day exponential moving average (EMA) in the $90.
The Bottom Line
T-Mobile stock broke out of a four-month cup and handle pattern, increasing the possibility of impressive gains in the coming quarters.
Disclosure: At the time of publication, the author held Verizon Communications in a family account, but no positions in the other aforementioned securities.