Wednesday, February 29, 2012

Frontier Communications is Now In the Danger Zone!

I am down by 1% in Frontier Communications ("FTR"). Although it is only 1%, however, it may signal a beginning of a short term downward trend that can cause me lose more than 10%. As per the heading, I am currently in a danger zone for FTR.

However, I am still holding on to FTR because:
1) Based on the past few candlestick pattern, it is showing multiple candlestick doji with leg which is a sign of indecision and consolidation pattern for a trend. The stock have a high chances of going up futher because the current trend is up and it is now in the consolidation phase. However, if the trend is down, and the multiple doji appeared, then it may signal the consolidation for a downtrend.

2) Although yesterday, the volume is slightly higher, overall for the past few days, the average volume is low which is good. It means that the selling is no longer strong and is subsiding.

3) The MACD is still showing a bullish pattern currently. I believe that once the consolidation is over, it will move higher and the current positive MACD sign will continue to go upward.

However, if things turn sour for FTR, I will not be hestitated to sell immediately. The 1 or 2 days candlestick patterns will decide whether I will continue to hold or cut my losses.

Disclosure: I am currently invested all my hard earned saving in FTR and is expecting a 20% profit at least. however, I am currently lost about 1% and if it continues to move downward in the next few days, I will definetely cut my loss.

The Market Oracle prediction is FTR will continue to move upward strongly after this overdue consolidation.

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