AT&T ($T) shows a bearish sequence from 7/5/2016 high in the form of a zigzag Elliott Wave Structure in which wave “a” ended at $32.55 on 11/8/2017 low and wave “b” ended at $39.33 on 12/25/2017 high. The stock has made a new low below wave “a” at $32.55 therefore confirming the next leg lower has started. While the bounce stays below wave “b” at $39.33, AT&T should continue lower and reach $25.26 – $27.95 area to end the zigzag structure from 7/5/2016 high.
The move lower in AT&T should happen together with the move lower in Indices. S&P 500 ($ES_F) also has scope to extend lower to 2372.44 – 2456.1 to end cycle from 1/29/2018 high. Ideally AT&T reaches $25.26 – $27.95 target area at the same time when S&P 500 reaches 2456 area.