T-Mobile Stock is Dialed In Right Now

The telecom stock has pulled back to long-term support

Apr 11, 2023 at 12:27 PM

TMUS

The shares of telecom giant T-Mobile US Inc (NASDAQ:TMUS) are consolidating into their 12-month moving average, which has been a historical launching point for gains in terms of the stock's long-term uptrend. Last week, the equity climbed above $144, its 2021 closing high, and its March 2023 high at $146.63.

Adding to this bullish technical setup, last Thursday TMUS broke out above a trendline connecting lower highs since its November peak, and this breakout could help the aforementioned longer-term trend reassert itself.

Short interest climbed 43% from the end of January to the middle of March, and currently stands at a multi-year high and at a level where it has historically peaked. The average close during this build was $143.37, implying shorts are in the red and ripe to cover. It would take these traders more than four days to cover, too, at T-Mobile stock's average pace of trading.

Our recommended August call has a leverage ratio of 8.1 and will double in value on a 14.2% pop in the underlying equity.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this TMUS commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

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