Crown Castle International Corp. (NYSE: CCI)

Crown Castle International Corp., together with is subsidiaries, owns, operates, and leases shared wireless infrastructure primarily in the United States, Puerto Rico, and Australia. The company’s wireless infrastructure includes towers and other structures, such as rooftops; and distributed antenna systems networks. It is involved in the rental of space or physical capacity on its towers, DAS, and third party land interests to wireless communications companies. The company also provides network services relating to its wireless infrastructure, which primarily consist of antenna installations and subsequent augmentation services, as well as additional site development services relating to existing and new antenna installations on its wireless infrastructure, such as site acquisition, architectural and engineering, zoning and permitting, fiber installation, other construction, and other services related to network development.

Before discussing potential trading opportunities, please take a look at the 1-year chart of CCI (Crown Castle International Corp.) below with my added notations:

1-year chart of CCI (Crown Castle International Corp.)

CCI has been steadily moving higher for most of the last year. Over the last (2) months the stock has found support at the $70 level (red). Yesterday the stock broke that $70 support. The breakdown occurred on high volume, which should add validity to the breakdown.

The Tale of the Tape: CCI has broken its support at $70 and the stock should be moving lower. A short position could be entered on any rallies back up near $70 with a stop placed above that level. A break back above $70 would negate the forecast for a move lower.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT