T-Mobile Stock is Dialed In Right Now

The telecom stock has pulled back to long-term support

Apr 11, 2023 at 12:27 PM

TMUS

The shares of telecom giant T-Mobile US Inc (NASDAQ:TMUS) are consolidating into their 12-month moving average, which has been a historical launching point for gains in terms of the stock's long-term uptrend. Last week, the equity climbed above $144, its 2021 closing high, and its March 2023 high at $146.63.

Adding to this bullish technical setup, last Thursday TMUS broke out above a trendline connecting lower highs since its November peak, and this breakout could help the aforementioned longer-term trend reassert itself.

Short interest climbed 43% from the end of January to the middle of March, and currently stands at a multi-year high and at a level where it has historically peaked. The average close during this build was $143.37, implying shorts are in the red and ripe to cover. It would take these traders more than four days to cover, too, at T-Mobile stock's average pace of trading.

Our recommended August call has a leverage ratio of 8.1 and will double in value on a 14.2% pop in the underlying equity.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this TMUS commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!