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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Telco Stocks to Trade This Month

Cincinnati Bell

Last up on our list of tradable telcos is Cincinnati Bell (CBB), a small-cap phone carrier that's posted some distinctly different price action over the last year. While most other communications stocks are up quite a bit in 2013, CBB is actually down more than 36% year-to-date. But there's still a trade to be made in this stock right now.

CBB made a parabolic drop in the first quarter of the year, falling from a price in the mid-$5 range to a 52-week low in the high $2s. But shares have been staging a comeback from those lows, and it's been an orderly one. Since bottoming in March, CBB has been trading higher in a very well-defined uptrend. That series of higher highs and lows makes CBB an interesting opportunity for traders looking for a telco trade with ramped up risk/reward - this is a much more volatile stock.

With shares testing trendline support today, I'd recommend being a buyer on the next white-bar day. Just keep a tight stop in place.

Momentum adds some confidence to this trade too. 14-day RSI has been in an uptrend since just before CBB bottomed, and it's continuing to push higher. Since momentum is a leading indicator of price, that bodes well for this beaten-down telecom stock in the second quarter.

To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

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