Telus Corporation (TU) shares are trading at $12.99 after losing another 0.70% today, and the Canadian telecom giant finds itself in a years-long technical stalemate. This isn’t just a bad week or month — TU has been declining since late 2022, and the chart reveals a stock stuck between multiple layers of resistance that has proven difficult to overcome.
The big picture tells a real story. The downward yellow trend line extending to the November 2022 peak around $22 has been an unforgiving ceiling, rejecting every meaningful rally attempt for over two years. Every time the bulls tried to come back, sellers appeared at this resistance, systematically pushing the price down in a pattern that defined the entire downtrend. This trend line is currently near $16, and remains a distant target for any serious reversal scenario.
But there is more pressing resistance that is causing headaches for bulls right now. Notice the horizontal yellow line at $13.62? This level has become the dividing line for this stock. Multiple tests throughout late 2024 ended in the same way, with the price approaching, being rejected, and then pulling back. The December 19 attempt, marked on the chart, looked promising for a moment before sellers intervened again. This is the definition of resistance doing its job.
What makes this setup particularly difficult for bulls is the double-barrel resistance structure. Even if TU can break above $13.62, there is still a downtrend line waiting above. Breaking a single resistance is difficult enough; Breaking two in a row requires sustained buying pressure and a fundamental catalyst that has yet to materialize.
The bear case is straightforward: This stock is in a confirmed downtrend, and fails at resistance, with low momentum. If $12.50 falls, the path to $12.00 and perhaps $11.50 opens up quickly. For the bears, the strategy is simple – wait for failed breakout attempts at $13.62 and then ride the rejection lower.
Bulls need completely different rules of play. Any long position here is considered speculation until TU can prove its character has changed by liquidating $13.62 on conviction and volume. That will be the first step. The second step requires addressing this downtrend line, which will not be easy given its multi-year track record of containing the price.
The reality is that TU is stuck in no man’s land, fighting layers of resistance that have held out for months. Until something breaks – whether resistance above or support below – this stock is more likely to break than trend.
