AT&T is struggling to keep its premium TV customers from hitting the unsubscribe button in favor of on-demand streaming service providers, such as Netflix. According to Yahoo!, the company lost 778,000 subscribers in Q2 2019 to bring losses to over 1.4 million customers in just the first half of the year.

The good news is that AT&T is a multidimensional firm. Gains from WarnerMedia and postpaid cellular subscriptions are keeping the multinational conglomerate profitable. AT&T reported a topline of $45 billion in Q2 which beat the consensus estimate of $44.85 billion. That figure reflected growth of over 15 percent versus the same period last year.

Moving forward, the company will rely on its 5G technology to offset the losses of its paid TV division. Based on the price action of AT&T shares, it seems that investors are optimistic about the company’s long-term prospects.

AT&T Bullish Breakout After Respecting Multi-Year Support

You don’t have to be an insider to know that AT&T’s future looks rosy. Investors are betting on the company to be one of the firsts, if not the first carrier, to get its 5G network up and running.

A look at the monthly chart of the stock reveals that investors continue to respect the multi-year trendline. This diagonal support has been in existence since 1986, which tells us that the security will very likely preserve this trendline in the foreseeable future.

AT&T flashing multiple bullish signals | Source: TradingView

In addition to that, we see AT&T breaking out of a falling wedge. The breakout coincides with the RSI breakout and rising volume. These signals tell us that buyers are excited to purchase the stock at current levels. This will likely drive the price to our targets of $43 and $50.

Todd Butterfield, owner of the Wyckoff Stock Market Institute, shared his bullish stance on AT&T with CCN.com. He said:

“AT&T has had a classic Wyckoff Accumulation phase. It began with the stopping action of Preliminary Support (PS), Selling Climax (SC), Automatic Rally (AR), and Secondary Test (ST). This was then followed by a Sign of Strength (SOS), and the Last Point of Support (LPS). Then the more important Jump Across The Creek, followed by the Backup To The Creek. The Composite Operator now has their position established, and ready for the Mark Up Phase.”

AT&T chart provided by Mr. Butterfield

In other words, the Wyckoff expert echoes our bullish sentiment as he sees AT&T rallying.