$T (AT&T) Double bottom strategy

8 jun 2022

T Double bottom in the daily chart. Objetive $24.86. Agressive stop loss at premarket gap ($18.85).

High risk trade. Why?

-MACD overextended, death cross confirmed.
-RSI with bearish divergence.
-Low volume at retest of neck line (previous resistance, now support)

Conclusion: Potential loss of support to lower levels to find demand before starting run towards the objective.
Entry level: $20 (Oct 20' lows - high demand) / Stop loss: $18.85

Potential returns: 24.3% // Max loss: 5.75%