AT&T (T) Forming a Bottom

09/04/2009 12:01 am EST

Focus: STOCKS

AT&T (T), the giant telecommunications services provider, has fallen from a high of almost $43 to less than $22 in a little over a year.



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This blue chip household name is forming a bottom, and now may be the time to add it as a longer-term quality holding. 

Buy signals from our internal indicator, the Collins-Bollinger Reversal (CBR), and an undervalued Moving Average Convergence/Divergence (MACD) are both favorable signs. 

But in order for the stock to get moving, it must break through the quintuple top at around $27. 

As a bonus, while waiting for the breakout, investors will receive a dividend yield of almost 6.5%. 

By Sam Collins of OptionsZone.com

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