(Premium) December Communication Services Outlook

The relative downtrend in Communication Services remains intact. We’ve seen a nice bounce over the last few weeks, but momentum is still in a bearish range, and prices have yet to set a higher high or challenge the downtrend line from the 2021 peak.

On an absolute basis, the sector is trying to confirm a potential bullish momentum divergence. Prices are up against their October highs and the downtrend line, so it would be meaningful to see further strength from here.

That further strength would do more to solidify the broader bull market in stocks, rather than indicate we want to be aggressive buying Communications.

Within the space, T-Mobile offers an attractive setup as it consolidated above former highs.

The post (Premium) December Communication Services Outlook first appeared on Grindstone Intelligence.