Frontier Communications (FTR) is a low-priced name with a base pattern and a positive technical outlook.
This chart of FTR, above, shows a lot of improvement in the past month. Prices rallied above the 50-day and 200-day moving averages. Prices have been strong enough to turn the slope of the 50-day average positive. The slope of the 200-day moving average is flat, but could soon join the direction of the 50-day. Prices have firmed above the August, September and October highs, and the Moving Average Convergence Divergence (MACD) oscillator is rising above the zero line. The On-Balance-Volume (OBV) line is turning more positive and we can see that in the recent uptick of the OBV line.
This longer-term chart of FTR, above, has generated some additional bullish signals for FTR. Prices are above the 40-week moving average. The OBV line has been rising for four months and the MACD oscillator is below zero, but heading upward. Traders who are comfortable with a low-priced name could go long FTR on a dip to $5.50 or on a close above $5.65. A $4.40 sell stop seems appropriate.