Stock of the day: T-Mobile US
25 October 2023
Today, all eyes are on T-Mobile US as they unveil their earnings before the opening bell. Anticipations have been set with the expected EPS at 1.7 and revenue pegged at 19.37 billion. When navigating the turbulent waters of the stock market, investors often flock to what's known as defensive stocks, and telecom stocks like T-Mobile US fit this description aptly. Historically, such stocks tend to demonstrate resilience amid market upheavals and economic downturns, providing a semblance of security.
Observing T-Mobile US's stock performance, it mirrors the typical behavior of defensive stocks. Over the past two years, 2022 and 2023, T-Mobile's price movements have been largely constrained, oscillating within a well-defined symmetric triangle pattern, demarcated by black lines. This period of consolidation was succeeded by what technical analysts identify as a 'flat channel up' formation, yet another pattern characterized by sideways movement, further underscoring the stock's non-directional trend.
With the earnings report on the horizon, market participants are eager to see its impact on the stock's trajectory. Currently, from a technical perspective, the stock is trading below pivotal resistance levels: the yellow horizontal resistance set at $144 and the looming red downtrend line. A surge past these barriers would be indicative of a bullish momentum, providing a cue to buy. Conversely, should the stock price breach the lower boundary of the 'channel up' formation, it would sound the alarm for potential sellers, signaling a bearish turn. The coming days will be instrumental in determining which path T-Mobile US chooses to tread.