At SIACharts, we compare head-to-head battles of thousands of stocks, commodities, mutual funds, and exchange traded funds daily and rank them by relative strength by who is winning the most in their respective universes. The top 25% of investments are in the Green Favored Zone, 26-50% make up the Yellow Neutral Zone, and the bottom half of each investment report is considered the Red Unfavored Zone. Relative strength analysis not only can help investors identify stocks that are outperforming their peers but also to avoid periods of underperformance. After climbing 6 spots in the last week and 12 positions in the last month, T-Mobile US Inc. (TMUS) has returned to the Green Favored Zone for the first time since November of 2022.
Over its year in the wilderness, TMUS steadily lost ground relative to its peers until bottoming out in the red zone in August. It started to march back up the rankings in September and returned to the yellow zone in October. Through most of 2022, in defiance of a falling market, T-Mobile US Inc. (TMUS) shares steadily advanced. After the broad market bottomed out and bounced back in the fall of 2022, and focus shifted away from telcos to technology and other growth sectors. TMUS shares stalled out and spend most of the last year trading between $130.00 and $150.00 with a couple of brief dips down toward $125.00.
Accumulation resumed in June and over the summer a new uptrend of higher lows emerged; one which has accelerated in the last month. Including this week, TMUS is either up or flat for seven weeks in a row now, a sign of consistently growing investor interest.
This week, TMUS has decisively broken out over $150.00 to new all-time highs, completing a bullish Ascending Triangle pattern, signaling that the recent consolidation phase is over indicating that long-term upward trend has resumed. Based on measured moves, next potential resistance may appear in the $170.00 to $175.00 area, with initial support possible at the 10-week (50-day) moving average near $145.00.
T-Mobile spent the last year trading between $125.00 and $150.00, consolidating previous gains. The shares hit their lows of the year and started to rebound but accumulation appears to have resumed in earnest in the last month, starting with a bullish Double Top breakout.
This month, the shares have completed a rare bullish Spread Quadruple Top pattern and have broken out to a new all-time high, signaling that their long-term uptrend has resumed.
Next potential upside resistance may appear near $172.10 based on a vertical count, or $186.25 based on a horizontal count. Initial support appears near $141.15 based on a common 3-box reversal.
With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 7 out of 10, TMUS is exhibiting short-term strength against the asset classes.
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