The 50-day moving average hasn't failed T yet
AT&T Inc (NYSE:T) stock is down 0.9% to trade at $26.58 at last glance, but still carries a 16.7% lead for 2025, and an even healthier 54% year-over-year gain. Shares are fresh off their worst weekly performance in just over a year amid the broad-market selloff and tumbled off their April 3, five-year high of $28.54, but a historically bullish signal now flashing may aid its recovery.
More specifically, the equity recently pulled back to its 50-day moving average, a move that has produced gains in the past, according to Schaeffer's Senior Quantitative Analyst Rocky White. This comes after a prolonged period above that trendline (defined by White as 80% of the time in the last two months and eight of the last 10 trading days).
A similar move occurred four times in the past three years, after which T was higher a month later each time, averaging a 4.1% gain. From its current perch, this would place the stock just shy of $28.
Options traders lean overwhelmingly bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.21 sits in the 97th percentile of annual readings. Should this pessimism begin to unwind, AT&T stock could charge even higher.