Crown Castle (CCI)

[DiscoverGold]

Sticking With Our Strategy on Crown Castle (CCI)
By: TheStreet | August 23, 2020

• There's a temptation to cut and run.

Crown Castle Int'l. (CCI) was last reviewed back on July 1, and we wrote that "CCI is in an uptrend so I would continue to trade it from the long side. Hold previous purchases and use a sell stop below $155 for now. Add to longs above $174. The $237 area is our price target for later this year."

Prices have drifted lower from early July but still remain above our risk point of $155. Let's check out the charts to see if we should stay or bail.

In this updated daily bar chart of CCI, below, we can see that prices have struggled above $175 in June and July, and then drifted lower since late July. CCI is below the declining 50-day moving average line but above the rising 200-day moving average line.

The On-Balance-Volume (OBV) line has also slipped a little in August and tells us that sellers of CCI have been more aggressive.

The Moving Average Convergence Divergence (MACD) oscillator has quietly moved below the zero line this month for an outright sell signal.



In this weekly bar chart of CCI, below, we see a mixed picture. Prices are still in a longer-term uptrend and above the rising 40-week moving average line.

Trading volume has declined a little in recent months suggesting less investor interest and the OBV line has been neutral since April.

The MACD oscillator crossed to the downside in July for a take profits sell signal.



In this updated Point and Figure chart of CCI, below, we used daily price data. Here the chart is projecting a possible decline to the $152 area which would probably mean that our long recommendation would be stopped out.



Bottom line strategy: So far our long recommendations on CCI have not (yet) worked out to our satisfaction. There is a temptation to cut and run, but over the years I have found that sticking to the original strategy -- of risking a close below $155 in this case -- is like not going back on a multiple choice test and changing the answers. The first response I have found to be the best response.

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