AT&T (T Stock) forecasting the decline and selling the rallies

Hello fellow traders. In this technical blog, we’re going to take a quick look at the Elliott Wave charts of AT&T ($T) Stock, published in the member's area of the website. As our members know, the stock is showing incomplete bearish sequences in the cycles from the Jule 2016 and November 2019 peaks. We’ve been calling the decline in the stock and recommend members to avoid buying the stock while favoring short selling. AT&T recently made the recovery that has had a form of Elliott Wave Zig Zag pattern. In the further text, we are going to explain the Elliott Wave Pattern and trading strategy.

Before we take a look at the real market example, let’s explain Elliott Wave Zigzag.

Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory. It’s made of 3 swings which have 5-3-5 inner structures. Inner swings are labeled as A, B, C where A =5 waves, B=3 waves, and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structures, such as: having RSI divergence between wave subdivisions, ideal Fibonacci extensions, and ideal retracements.

Now, let’s take a look at what the Elliott Wave Zig Zag Pattern looks like in the real market.

AT&T ($T) 1 hour Elliott Wave analysis 10.21.2021

AT&T is giving us (iv) black recovery that is unfolding as Elliott Wave Zig Zag Pattern. It’s having (a)(b) (c) blue inner labeling. The main characteristic of Zig Zag is that it has 5,3,5 structures. Waves (a) and (c) have 5 waves form, while (b) is 3 waves. The price reached the Sellers zone at 26.19-26.77. Although another marginal push-up within the marked zone is possible, there are already enough swings in place. So, turn lower can be seen any moment. Invalidation for the short trade is a break above 1.618 fib extension (1381’7). We don’t advise buying the stock and favor the short side from the Blue Box Area.

AT&T ($T) 1 hour Elliott Wave analysis 10.22.2021

Sellers appeared at the blue box and we got a good reaction from there. The decline from the blue box reached 50 fibs against the (b) connector. As a result, short positions from the blue box are Risk-Free and partial profit is taken. Break of 13th October low – ((iii)) black is needed to confirm next leg down is in progress.

AT&T ($T) 1 hour Elliott Wave analysis 11.09.2021