Friday, 21 June 2024

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Friday Great Value Trade (T)

plus, a big bank bounce
 
   
     
   
 
JUNE 21, 2024
   
SCOTT WELSH’S TICKER TALES
Friday Great Value Trade (T)
 

AT&T was a top-notch dividend stock from a big-name company that everyone recognized. 

It was a fan favorite.

And then it cut its dividend — and the fair-weather fans bolted.

They bolted so much, in fact, that T became a value stock.

It fell all the way down to its lower Bollinger Band­™ level and looked like it may never come back.

More competition, less dividend, no way out.

Here’s the chart:

 
 

It breached the lower Band in 2022 and did it again in the fall of 2023.

What happened then?

Traders got over their anger of the cut dividend and sent it soaring. 

A buy below the Band in July 2023 around $14.50 saw everything turn around. Eventually T hit “fair value” at $18.40 for a big gain.

And traders would’ve paid a large dividend all along the way. 

Happy trading,
— Scott Welsh

P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.

 
 
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SCOTT WELSH’S TICKER TALES
A Big Bank Bounce? (UBS)
 

Breakout traders love it when a stock is showing positive momentum and then pulls back slightly.

In the trading world, this is called the cup with handle pattern and this usually means the stock has a chance to explode if it moves to new highs.

And we’re seeing that type of action in UBS (UBS GroupP right now. 

Here’s the chart:

 
 

Not only has this stock been hot for several weeks, banking has been one of the hottest 50 groups in the world lately.

If it breaks above $31.95, we could see a big move.

We’ll keep an eye on it.

Happy trading,
— Scott Welsh

P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.

 
   
 

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