Why are hedge funds buying T-Mobile (TMUS)?

(Bloomberg) T-Mobile Emerges as Hedge Fund Favorite With Stock on a Tear

-

Is it too late? How much strength is still left? Back to the wise advice "Trust, but verify."

What do Heikin-Ashi trend charts say?

-

‍

T-Mobile (TMUS) daily

‍

Positive and negative trend elements for the short-term:

(+)

1. No high-volume selling. The push came in late July with a huge Heikin-Ashi volume::price candle. Positive.
2. Higher highs, higher lows.

(-)

1. N/A.

‍

-

‍

T-Mobile (TMUS) weekly

‍

Positive and negative trend elements for the medium-term:

(+)

1. Heikin-Ashi candles are white, above MA7, with a positive slope.
2. The close is 13.97% above the trailing-stop.
3. Higher highs, higher lows since February 2022.

‍

(-)

1. haDelta turns below its short average.
2. The Slope indicator is above recent levels where momentum weakened.
3. haOscillator is high @87.

‍

-

‍

T-Mobile (TMUS) monthly

‍

Positive and negative trend elements for the long-term:

(+)

1. Heikin-Ashi candles are white, above  MA7, with a positive slope.
2. The close is 25.81% above the trailing-stop.
3. haDelta turns above its short average.
4. The cup pattern in an uptrend suggests a price target of ~200 (resistance + the depth of the cup).

(-)

1. Obvious resistance @150. Limited upside in the short-term.
2. The Slope indicator has a high value.

(!)

1. haOscillator is @88/100.

‍

-

‍

SP-500 Index daily

‍

Note: haDelta pointed to weakness 3 days before the top.

Positive and negative trend elements for the short-term:

‍

(+)

1. The last Heikin-Ashi candle turned red, below MA7, still with a positive slope.
2. Higher highs, higher lows.
3. The close is 2.51% above the trailing-stop.

‍

(-)

1. haDelta average is negative.

‍

-

SP-500 Index weekly

‍

Positive and negative trend elements for the short-term:

‍

(+)

1. White Heikin-Ashi candles, above MA7, with a positive slope.
2. Above recent June high.
3. The close is 11.67% above the trailing-stop.

‍

(-)

1. Negative congruence Slope indicator :: haDelta :: haDelta average. Higher probability for a top here.
2. haDelta average is below its average.
3. haOscillator is @97 (high).

‍

-

‍

SP-500 Index monthly

‍

Positive and negative trend elements for the long-term:

‍

(+)

1. haDelta is above its average.
2. The Slope indicator bounced from the 2020 support.
3. haOscillator is bullish.

‍

(-)

1. The close is 9.41% below the trailing-stop.

(!)

1. White Heikin-Ashi candle, but below MA7, with a negative slope.

‍

-

‍

The Takeaway

‍

T-Mobile takes a short-term pause. The long-term picture points to a theoretical price target of $200.

The market made a top here. Long-term, it looks good.

---

‍

‍