Will FRONTIER COMMUNICATIONS PARE breakout?

FRONTIER COMMUNICATIONS PARE (NASDAQ:FYBR) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:FYBR.

What is the technical picture of NASDAQ:FYBR telling us.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to FYBR. In the last year, FYBR was an average performer in the market. There are positive signs in the very recent evolution, but the medium term picture is still mixed.

• The long term trend is still neutral, but the short term trend is positive, so the stock is getting more and more appreciated by traders and investors.
• In the last month FYBR has a been trading in the 23.79 - 26.41 range, which is quite wide. It is currently trading near the high of this range.
• When compared to the yearly performance of all other stocks, FYBR outperforms 55% of them, which is more or less in line with the market.
• FYBR is part of the Diversified Telecommunication Services industry. There are 43 other stocks in this industry, FYBR did better than 62% of them.
• FYBR is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

Why is NASDAQ:FYBR a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:FYBR this score is currently 10:

Besides having an excellent technical rating, FYBR also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 27.03. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.85, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for FYBR in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NASDAQ:FYBR and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout analyzer lists more breakout setups and is updated daily.