Telus Corporation (TU) is experiencing a prolonged decline, with shares now at $12.99 after a 0.70% drop today. The stock’s persistent downtrend began in late 2022 and continues to face various resistance levels. The descending trendline, which started at the November 2022 peak of $22, has consistently rejected rally attempts over the last two years.<\/p>\n
Currently, a horizontal resistance level at $13.62 acts as a barrier. Despite multiple attempts to breach this point in late 2024, the stock has repeatedly pulled back. The most recent attempt on 19th December initially showed potential but was thwarted by sellers, emphasising the challenge this resistance level poses.<\/p>\n
TU’s struggles are compounded by its dual resistance structure. Overcoming the $13.62 level and the descending trendline requires strong buying pressure and a fundamental market shift that has not yet occurred. If the price breaks below $12.50, it may rapidly head towards $12.00 or $11.50.<\/p>\n
To gain an upward momentum, bulls need to see the stock convincingly surpass $13.62 with significant volume. Only then can they target the descending trendline, a hurdle that has historically proved formidable. Until a breakout happens, TU’s stock appears set to fluctuate within its current range.<\/p>\n
Given that Telus is trading at $12.99 on December 30, 2025, we see a clear bearish setup defined by persistent technical weakness. The broader economic environment supports this view, as the Bank of Canada has held interest rates above 4.5% for most of 2025, putting significant pressure on capital-intensive companies like Telus. This sustained high-rate environment has been a headwind for the entire sector, making it difficult for these stocks to attract capital.<\/p>\n
For those expecting the downtrend to continue, buying puts is the most direct strategy. Considering the strong resistance at $13.62 and potential support breakdown at $12.50, we should be looking at February or March 2026 puts with strikes of $12.00 or lower. This gives the trade enough time to play out if the technical support fails in the early weeks of the new year.<\/p>\n
This bearish outlook is reinforced by recent fundamental data. The Q3 2025 earnings report released in November showed that subscriber growth had slowed to its lowest rate since 2019, with aggressive pricing from competitors like Freedom Mobile capturing market share. Statistics from the Canadian Radio-television and Telecommunications Commission (CRTC) in late 2025 also confirmed a market share loss of nearly 1% for the major incumbents over the past year.<\/p>\n
An alternative strategy is to sell the resistance by using credit spreads. We can consider selling a January 2026 bear call spread, selling the $13.50 or $14.00 strike calls while buying a higher strike for protection. This trade profits from time decay and the stock’s inability to break through that well-established $13.62 resistance level.<\/p>\n
The source material notes the stock is likely to “chop,” which suggests premium-selling strategies could be effective. If implied volatility remains elevated from the recent slide, an iron condor with short strikes around $12.00 and $14.00 could capitalize on this range-bound action. This approach bets that Telus will remain stuck between its major support and resistance levels through the January 2026 expiration cycle.<\/p>\n
We must also be cautious of the dividend, which now yields over 7%\u2014a level not seen since the financial crisis of 2008. While tempting, such a high yield often signals market distress about future cash flow and dividend sustainability, especially when remembering how the rate hike cycle that began back in 2022 first started this multi-year decline.<\/p>\n
For any speculative bulls, the play requires a clear breakout with high volume above $13.62. A low-cost way to position for this unlikely event would be to buy far out-of-the-money calls, such as the March 2026 $15 strike calls. This is a low-probability trade that treats a small amount of capital as a lottery ticket on a sudden change in market character.<\/p>\n","protected":false},"excerpt":{"rendered":"
Telus stock remains in a downtrend, struggling below key resistance at $13.62 amid persistent selling pressure.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-37955","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/37955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=37955"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/37955\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=37955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=37955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=37955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}