TELUS stock drops 3.86% as reduced connection fee may lower initial revenue

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Telus slides 3.86% today to C$16.43

Highlights

TELUS extended Optik TV to Montreal and Quebec City, broadening its service footprint and supporting future subscriber expansion.
The company maintained its C$0.4184 quarterly dividend, delivering a 9.8% forward yield and underscoring stable cash flow.
TELUS trades below major moving averages under sustained bearish momentum, with a projected short-term price range of C$15.69 to C$16.63.

Market reach expands and fee changes as selling pressure persists

TELUS expanded its Optik TV service to the Montreal and Quebec City regions, introducing over 300 channels and flexible bundling with PureFibre Internet and other services, which broadens its market reach and may support long-term subscriber growth. The company maintained its quarterly dividend at C$0.4184 per share, resulting in a 9.8% forward yield, reflecting continued cash flow consistency and a sustained payout policy. TELUS also adjusted its customer activation fees by introducing a mandatory C$15 SIM charge for all new activations and removing the previous C$80 connection fee, possibly affecting near-term customer acquisition dynamics. These corporate developments coincided with persistent broader selling pressure.

Oversold technicals persist as losses deepen below moving averages

T is trading below its MA-20 at C$17.00, MA-50 at C$17.13, and well under the long-term MA-200 at C$19.06. The Ichimoku Kijun sits at C$16.81, marking immediate resistance. Oscillator readings show sustained weakness: RSI at 24.98, CCI, Stoch RSI, and BBP all indicate oversold conditions, while MACD triggers a sell signal. ADX remains neutral, and the Awesome Oscillator does not confirm the trend. Price action has remained weak near today's lows with no signs of bullish divergence.

Downside risk dominates as volatility traps price in narrow band

For the next few trading sessions, T is expected to consolidate within a C$15.69 to C$16.63 range, reflecting the current volatility band relative to recent levels. The probability of continued declines stands at 76%, with only a 24% chance of a decisive rebound. A move above immediate resistance at C$16.81 could signal a bullish reversal, while a drop below support would open the way to further downside.

Viktoras Karapetjanc, Traders Union expert, sees TELUS’s ongoing service expansion and stable dividend as strong signals of fundamental health. He believes the new customer fee structure should encourage new sign-ups over time, despite current technical weakness and selling pressure. The analyst remains optimistic, noting that oversold conditions could provide a base for recovery if sentiment improves. "If TELUS can hold above support and sustain its growth initiatives, I expect the stock to regain positive momentum in the coming sessions."

Earlier, analysts noted that TELUS shares were experiencing persistent selling pressure and were likely to remain rangebound amid mixed technical signals. The latest data reinforces this cautious outlook, with deeply oversold readings suggesting traders should closely monitor for a potential shift in momentum if immediate resistance at C$16.81 is reclaimed.

Source of Data: T Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.