By Paul Kornfeld, CFA
1/ T-Mobile Returns to the Favored Zone
2/ Candlestick TMUS Chart Resuming its Long-Term Uptrend
3/ Point and Figure TMUS Chart a Rare Spread Quadruple Top Breakout
Investopedia is partnering with CMT Association on this newsletter. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.
1/ T-Mobile Returns to the Favored Zone
Relative strength analysis not only can help investors identify stocks that are outperforming their peers but also to avoid periods of underperformance. After climbing 6 spots in the last week and 12 positions in the last month, T-Mobile US Inc. (TMUS) has returned to the Green Favored Zone for the first time since November of 2022.
Over its year in the wilderness, TMUS steadily lost ground relative to its peers until bottoming out in the red zone in August. It started to march back up the rankings in September and returned to the yellow zone in October.
2/ Candlestick TMUS Chart Resuming its Long-Term Uptrend
Through most of 2022, in defiance of a falling market, T-Mobile US Inc. (TMUS) shares steadily advanced. After the broad market bottomed out and bounced back in the fall of 2022, and focus shifted away from telcos to technology and other growth sectors. TMUS shares stalled out and spend most of the last year trading between $130.00 and $150.00 with a couple of brief dips down toward $125.00.
Accumulation resumed in June and over the summer a new uptrend of higher lows emerged; one which has accelerated in the last month. Including this week, TMUS is either up or flat for seven weeks in a row now, a sign of consistently growing investor interest.
This week, TMUS has decisively broken out over $150.00 to new all-time highs, completing a bullish Ascending Triangle pattern, signaling that the recent consolidation phase is over indicating that long-term upward trend has resumed. Based on measured moves, next potential resistance may appear in the $170.00 to $175.00 area, with initial support possible at the 10-week (50-day) moving average near $145.00.
3/ Point and Figure TMUS Chart a Rare Spread Quadruple Top Breakout
T-Mobile US Inc. (TMUS) spent the last year trading between $125.00 and $150.00, consolidating previous gains. The shares hit their lows of the year and started to rebound but accumulation appears to have resumed in earnest in the last month, starting with a bullish Double Top breakout.
This month, the shares have completed a rare bullish Spread Quadruple Top pattern and have broken out to a new all-time high, signaling that their long-term uptrend has resumed.
Next potential upside resistance may appear near $172.10 based on a vertical count, or $186.25 based on a horizontal count. Initial support appears near $141.15 based on a common 3-box reversal.
With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 7 out of 10, TMUS is exhibiting short-term strength against the asset classes.
—
Originally posted 7th December 2023
Disclosure: Investopedia
Investopedia.com: The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment or strategy. This information is intended for US residents only.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Investopedia and is being posted with its permission. The views expressed in this material are solely those of the author and/or Investopedia and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: ETFs
Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Join The Conversation
If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.