🔴 Dialing Up a Winning Trade on AT&T's Stock (w/Dave Keller) | Stock Trade Ideas

TL;DR

Dave Keller discusses a bullish trade on AT&T as a defensive play, with a target price of $37 by October.

Transcript

ALEX ROSENBERG: Welcome to Trade Ideas. I'm Alex Rosenberg, sitting down with Dave Keller, President of Sierra Alpha Research. Dave, thanks for coming in today. DAVE KELLER: Thanks, Alex. Good to see you. ALEX ROSENBERG: So, we had to have you here because you joined us in early April with a trade on AT&T as a defensive play on the broader marke... Read More

Key Insights

• 🧑‍🏭 AT&T was recommended as a defensive trade based on price, yield, macro factors, and seasonality.
• 🛀 Keller's bullish stance on AT&T is supported by technical indicators showing outperformance relative to the market.
• ✳️ Keller emphasizes the importance of analyzing price behavior and divergences to identify potential downside risks or accumulation opportunities.

Questions & Answers

Q: What were the factors that made AT&T a compelling trade in early April?

AT&T was deemed compelling due to its price, yield, favorable macro environment for defensive sectors, and seasonality, making it a strong defensive play amid market uncertainties.

Q: How did AT&T perform compared to the broader market since the trade recommendation in April?

AT&T rose to $34 while the broader market saw little movement, validating Keller's prediction of a favorable trade amid market uncertainties.

Q: What are some technical indicators that support Keller's bullish outlook on AT&T?

Keller mentioned divergences in large-cap, mid-cap, and small-cap stocks, as well as a bearish divergence on the daily chart, signaling limited short-term downside potential and a good accumulation opportunity.

Q: How does Keller view AT&T's stock price target of $37 by October?

Keller believes $37 is a crucial resistance level based on the market's memory, with potential profit-taking at that point, advising to re-evaluate based on price action when approaching the target.

Summary & Key Takeaways

• Dave Keller recommended a trade on AT&T in early April as a defensive play based on price, yield, macro factors, and seasonality.

• Keller predicted the stock to rise to $34, which it did, while the broader market remained stagnant amid market uncertainties and divergences.

• Keller remains bullish on AT&T, expecting it to continue higher to $37, citing technical indicators and market psychology.