On Friday, in the 03:00 Update, I profiled shares of AT&T (NYSE:T) as bullish at the $17.80. "Well... get those boots on and lets go dancing" was my thought. Since then, the trading in AT&T has been a "slow waltz" and has subscriber's asking the question "what now?" This may also be a valid question with other stocks subscribers are holding in their accounts that just don't seem to be moving.
AT&T Chart -
Shares of AT&T (NYSE:T) have moved very little since our profile as bullish on Friday at the $17.80. At that time, we did a quick relative strength measurement and found the stock had indeed reversed into a column of X's vs. the S&P 500. But by sessions close that day, the stock had pulled back and no longer traded at a level sufficient enough to have RS in a column of X's (this is why RS chart vs. SPX is still in O's).
So what's a trader to do? A trader wants to dance and right now, shares of T just aren't moving. A trader with limited capital that feels they're missing some good trades and has too much money tied up in the stock should probably look elsewhere as the trade hasn't unfolded to their liking (on a short-term basis).
A "swing-trader" may still want to give the stock a chance. A trader that looks around at some stocks may feel like they're "chasing" things, but the chart of AT&T (T) still looks like it is near the upper end of a consolidation range and it may take a trade above the $18 level to get things moving. Bullish targets near $19.26 and $20.94 still offer the bull some favorable upside. Since volume remains anemic, a trader could raise his/her stop to just under Monday's low of $16.92 or yesterday's low of $17.11. This type of trading plan would have the trader saying.... "look, I'll give you a chance, but I want to dance!" Nobody (especially traders) likes a partner that steps on their toes.
If you feel T is holding your account back, then cut out and find another partner that offers a more favorable risk/reward profile. If you're stop is just below Monday's low of $16.92 and bullish target is $19.26, then you have a risk/reward profile of -$0.74/+$1.60 from current trading of T at $17.66.