BELLEVUE, WA – T-Mobile US, Inc. (NASDAQ: TMUS) wrapped up Thursday’s session with a modest gain, closing at
0.53 (0.24%). While the stock finished in positive territory, a closer look at the day’s trading pattern reveals underlying weakness that could spell trouble for the stock heading into next week.
The telecom giant experienced a volatile day. After opening at $222.11, the stock quickly rallied to a session high of $223.20 in the morning. However, the bulls were unable to maintain control. From midday onwards, the stock entered a steady downtrend, erasing all its earlier gains and falling to a low of $220.90 late in the afternoon.
While a small bounce occurred just before the close and after-hours trading showed a slight lift to $221.90, the overall price action points to significant selling pressure.
What This Means for Monday
Despite the green closing number, the technical signals suggest the market is more likely to go DOWN on Monday. Here’s why investors should be cautious:
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A Classic Weak Close: The most significant bearish indicator is that the stock closed much nearer to its daily low (
223.20). This indicates that sellers dominated the latter part of the session and were in control as the market closed.
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Failed Morning Rally: The inability to hold the morning’s highs shows a lack of conviction from buyers. When a stock rallies early only to see those gains completely evaporate, it often signals that the path of least resistance is downwards.
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Closing Below the Open: T-Mobile opened at $222.11 but closed lower at $221.52. This pattern, known as a “black candle” in candlestick charting, is a negative sign that suggests sellers were more powerful than buyers over the course of the full day.
The small after-hours gain provides a sliver of hope for the bulls, but it isn’t enough to counteract the strong selling pressure seen throughout the afternoon. On Monday, traders will be closely watching the daily low of $220.90. A break below this level could trigger further selling and confirm that the bears have taken control.
