Where to now for long term investors of Telstra, page-1589

Do agree @Grow Rich, just wait until the bank stocks start to cut dividends, it's going to get ugly.

With the NBN revision now digested by the market, I believe we have 2 positive factors on TLS's side that has assisted with the recent share price support and will most likely continue to see buy side interest further continue;

1. Which you mentioned in regards to the banking royal commission, they day of this hitting the market, bank stocks where whipsawed with inflows making it's way to the TLS share price. Domestic and offshore fund managers will be re-assessing their bank exposure in the wake of this news, TLS is a logical place for this money to find a home. It's fair to say that the risk of a further 20% + share price decline in TLS is fairly low, vs that of the banking sector as the Royal commission gets under way / dragged out.

2. With the large line of stock changing hands last week, a number of insto's with a positive view of TLS have either increase their position or recently joined the share register. Fund managers live and die by performance numbers and you can bet that they won't want to see the share price move below their recent purchase price and it may in fact draw further market support as these funds may look to further increase exposure.

$3.475 is the new technical level of resistance (previously $3.50, however as moving averages change over time, this has come down). When TLS clears the $3.475, $3.53 is the next critical point that needs to be taken out. Once this is achieved, I believe we will see a good level of technical buying hit the screens to assist with demand. I expect that once this $3.53 is taken out, TLS will be in the new trading range to take it back to $3.80 in the short term.