Nearest Resistance: N/A
Nearest Support: $5
Catalyst: Technical Setup
Mid-cap communications stock Frontier Communications (FTR - Get Report) is up 1.3% on high volume this afternoon, following through to new highs after breaking out above $5 resistance on Monday. That price action makes $5 a new support level for shares, and makes more upside the likely trade for shares.
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Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. If you decide to be a buyer here, I'd recommend keeping a stop under the lower support level at $4.90.
FTR still pays out a whopping 7.6% dividend yield at current prices.
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-- Written by Jonas Elmerraji in Baltimore.