We present you the mid-term investment overview of the shares of the telecommunications corporation AT&T Inc.

The company continues to modernize its infrastructure in order to maintain its commitment to wired communications, which has received more than 145.0 billion dollars over the past five years. At the end of May, the traditional J.P. Morgan Global Technology, Media and Communications conference took place, where the CEO of AT&T Inc., John Stankey, gave a major speech. In particular, he noted that by the end of 2024, capital investments in infrastructure modernization will reach a value of 21.0–22.0 billion dollars. Stankey also stated that due to the continued growth of the customer base, by 2026, the company will be able to reduce costs by more than 2.0 billion dollars, and the ratio of net debt to EBITDA will be in the range of 2.5x in the first half of 2025. In addition, by the end of 2025, it is planned to expand the coverage of the fiber–optic network from the current 27.0 million users to 30.0 million users: the company is already assessing up to 10.0-15.0 million new locations where expansion is possible. It is also worth noting the recently concluded final commercial agreement with AST SpaceMobile, under which it is planned to create the first space broadband network for user cell phones. The agreement is signed until 2030, and this summer AST SpaceMobile plans to launch 5 satellites into orbit that will provide a primary network.

The stable position of AT&T Inc. is also confirmed by the results of the recent annual meeting of shareholders, during which each of the 11 members of the board of directors was re-elected for a one-year term. It is expected that in the near future the next payment of quarterly dividends will be announced, the value of which is likely to be 0.2775 dollars per share, which is equivalent to 6.43% yield.

In addition to the underlying fundamental factors, the possible continuation of the growth of the company's shares in the near future is also confirmed by technical indicators: on the W1 chart, the price is trading within the correction and has already left the limits of the long-term descending channel of 19.00–14.00, breaking the resistance line at 15.60.

As part of the new wave, the quotes have almost reached the Fibonacci 23.6% level of the initial correction at 19.50, which will be the actual confirmation of the transition to the stage of a full-fledged upward correction.

Key levels can be seen on the D1 chart.

As can be seen on the chart, the price is moving in an ascending channel with the borders of 19.30–16.60. An additional factor in favor of the upward dynamics will be the exit of quotes from this channel with consolidation above the resistance line, which almost coincides with the Fibonacci 23.6% level of the initial correction at around 19.50.

In the area of the minimum of July 16, 2023 at 13.20, there is a zone of cancellation of the buy signal; if it is reached, the upward scenario will either be canceled or noticeably delayed in time, and open buy positions should be eliminated.

Near the Fibonacci 61.8% full correction level at around 29.40 there is a target zone, in case of reaching which it is necessary to take profits on long positions.

In more detail, trade entry levels can be evaluated on the H4 chart.

The entry level for purchase transactions is located around the 19.40 mark, which coincides with the Fibonacci 23.6% level of the initial correction, and a signal to enter the market can be received within a few days. Technically, the trend will move to a full-fledged correction by consolidating the price above the key Fibonacci level.

Given the nature of the underlying fundamental factors, the price may reach the target zone within the framework of a gradual uptrend. In this case, it is necessary to take into account the average daily volatility of the trading instrument for the last month, which is 25.0 points. Thus, the price movement to the target zone of 29.40 may take approximately 77 trading sessions.