Nearest Resistance: N/A
Nearest Support: $5
Catalyst: Technical Setup
Mid-cap communications stock Frontier Communications (FTR) 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.
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.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.