In currents times of stay-at-home mandates and economic closures, entertainment streaming services such as Netflix and Hulu may be in higher demand than ever.
While companies like Apple and Disney would often broadcast noteworthy developments enriching their platforms (e.g. talent acquisition for original programming, exclusive content, unique service features, etc.) in the lead-up to launch, there is a telecommunication company that has taken a more subtle approach to launching its first entertainment streaming service, especially after acquiring Time Warner in 2018.
AT&T (NYSE: T) announced overnight that it is preparing to launch an HBO Max subscription streaming service in May, during which stay-at-home mandates are likely to remain in practice even if certain restrictions begin to recede.
Subsequently, Financial analyst Emily Barry of Dow Jones Newswires immediately raised her bullish outlook on AT&T as a company.
With the COVID-19 pandemic leading movie theatres to shut down as nonessential services (andas high-risk venues for virus transmission), Barry believes entertainment streaming services will only increase in consumer demand. I anticipate Barry may be one of multiple financial professionals to continue to raise their bullish outlook on AT&T in the hours or even days ahead.
In an effort to pair AT&T’s business enhancement initiatives with my personal technical analysis, I believe AT&T could be setting up for a profitable trading opportunity today.
Similar to many stocks making moves out of oversold in recent trading days, AT&T is currently trading pennies above its 20-day simple moving average line – indicated in green on the chart above.
If AT&T trades above its 20-day simple moving average line, I’ll consider making a bullish trade and cashing out by the end of the day.
If trading below its 20-day simple moving average line, AT&T becomes a fast-paced momentum trade to the downside in my eyes, and I will proceed with a trading plan of cashing in by the closing bell.
Identifying stocks facing an intriguing financial catalyst responsive to both green and red market conditions can make trading significantly easier for individuals just like you… that’s where I come in, on a daily basis.
Yours for TrackStar trading,
America’s #1 Premarket and Day Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.