T-Mobile USA has limped as the broader market hits new highs, and now some traders may see downside signals emerging.
The first pattern on today’s chart is the gap lower on September 8. (The drop came after SpaceX’s Starlink purchased wireless spectrum licenses with plans to compete against carriers like TMUS.)
Second, the wireless company failed to rebound from the drop. That may suggest few investors saw an opportunity in the pullback.
Third, TMUS made a series of lower highs while closing above August 1’s weekly close of $237.20. However yesterday it seemed to break that descending triangle to the downside.
Next, recent consolidation below the 200-day simple moving average may suggest the long-term trend is growing more bearish.
Finally, MACD has been falling and the 8-day exponential moving average (EMA) is below the 21-day EMA. Those signals may reflect short-term bearishness.
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