Telus Company (TU) is buying and selling at $12.99 after shedding one other 0.70% in the present day, and the Canadian telecom big finds itself in a technical predicament that is been years within the making. This is not only a dangerous week or month—TU has been grinding decrease since late 2022, and the chart reveals a inventory caught between a number of layers of resistance which have confirmed stubbornly tough to beat.
The massive image tells a sobering story. That descending yellow trendline stretching again to the November 2022 peak round $22 has been an unforgiving ceiling, rejecting each significant rally try for over two years. Every time bulls tried to mount a comeback, sellers emerged at this resistance, methodically pushing worth decrease in a sample that is outlined your entire downtrend. At present sitting round $16, this trendline stays a distant goal for any critical reversal state of affairs.
However there is a extra instant resistance that is giving bulls complications proper now. Discover that horizontal yellow line at $13.62? That degree has grow to be the road within the sand for this inventory. A number of checks all through late 2024 have all ended the identical approach—worth approaches, will get rejected, and pulls again. The December nineteenth try, marked on the chart, appeared promising for a second earlier than sellers stepped in as soon as once more. That is the definition of resistance doing its job.
What makes this setup significantly difficult for bulls is the double-barrel resistance construction. Even when TU manages to clear $13.62, there’s nonetheless that descending trendline ready overhead. Breaking one resistance is tough sufficient; breaking by two in succession requires sustained shopping for stress and a basic catalyst that merely hasn’t materialized but.
The bearish case is easy: it is a inventory in a confirmed downtrend, failing at resistance, with momentum pointing decrease. If $12.50 offers approach, the trail towards $12.00 and probably $11.50 opens up shortly. For bears, the technique is straightforward—anticipate failed breakout makes an attempt at $13.62 and trip the rejection decrease.
Bulls want a unique playbook fully. Any lengthy place right here is speculative till TU can show it is modified character by clearing $13.62 with conviction and quantity. That will be the first step. Step two requires tackling that descending trendline, which will not be straightforward given its multi-year observe document of containing worth.
The truth is that TU is caught in no-man’s-land, battling resistance layers which have held agency for months. Till one thing breaks—both resistance overhead or assist beneath—this inventory is extra more likely to chop than pattern.
