Last up on our list of tradable telcos is
), 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
-- Written by Jonas Elmerraji in Baltimore.
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