NEW YORK (TheStreet) -- Verizon Communications (VZ) edged higher Wednesday, despite a recommendation from a market technician for investors to take profits. Frontier Communications (FTR) soared following an analyst upgrade.
Verizon rose 0.30% to close at $49.57.
Verizon has managed to hold steady, despite a recommendation from an Eagle Bay Capital market technician to take profits in the carrier. In the publication's Dow 30 report issued on May 18, it advised investors to take profits "quickly." Verizon closed at $49.79 on May 15, prior to the report's release, and finished the day down 0.38% at $49.60 on the day the report was published.
Since then, it has dropped only 0.44% to $49.57 as of Wednesday. Nonetheless, here is what Eagle Bay had to say, according to the report:
These flat 200-day moving averages increase the likelihood of whipsaws which is precisely what has occurred the past few months. This is an overall messy situation and as nice of a trade as that was, we've suggested taking profits quickly and still feel that way.
Verizon, meanwhile, is in the process of acquiring AOL (AOL), a move that investors also have seemed to take in stride. The stock closed at $49.62 on the day of the announcement and has traded in a tight range.
Frontier Communications soared 7.3% to close at $5.28.
The rural and local telephone provider jumped after Morgan Stanley upgraded the stock to overweight from underweight.
In making this move, Morgan Stanley attributed the change to Frontier's attractive dividend yield and a valuation call. According to a report in theflyonthewall.com, the upgrade was prompted by Frontier's selloff during the year that pushed it 26% lower year to date.