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Assessing Frontier Communications’ Key Technicals


Aug. 29 2018, Updated 1:00 p.m. ET

Technical indicators

Previously in this series, we evaluated the latest analyst recommendations for Frontier Communications (FTR) stock. The majority of analysts are suggesting a “hold.”

Let’s look at Frontier’s technical indicators and compare them to its peers in the telecom space. We’ll use the company’s moving averages and RSI (relative strength index) scores, which are among the most frequently used technical indicators.

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Moving averages

A stock’s short-term MA (moving average) that’s higher than its long-term MA suggests technical strength and positive investor sentiment. On August 22, Frontier’s 20-day MA of $5.31 was lower than its 100-day MA of $7.05, indicating technical weakness.

100-day moving averages

On August 22, Frontier was trading ~20.4% below its 100-day moving average. In comparison, CenturyLink (CTL) was trading ~18.4% above its 100-day moving average, and Windstream Holdings (WIN) was trading ~9.6% below its 100-day moving average.

Relative strength index

A stock’s 14-day RSI score is measured on a scale of zero to 100. A 14-day RSI reading greater than 70 indicates that the stock is overbought, and a 14-day RSI reading lower than 30 indicates that it’s oversold. A stock trading between 30 and 70 suggests balanced trading activity.

On August 22, Frontier had a 14-day RSI score of 55. CenturyLink and Windstream had 14-day RSI scores of 64 and 67, respectively. In the integrated US telecom space, the 14-day RSI scores for AT&T (T) and Verizon (VZ) were 54 and 64, respectively.


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