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Cincinnati Bell (CBB) Revisited

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I wrote an article on Cincinnati Bell (CBB) at the end of May. I stated back then that a move to $4.00 was likely. The Price Momentum Oscillator (PMO) had bottomed but had yet to deliver a BUY signal. Since then CBB has gone through a few changes. The most important being a decisive (> 3%) breakout ABOVE $4.00.



Granted Friday's crazy rally helped CBB with the decisive breakout. Apparently Barron's had indicated it was a good BUY. Looking at this daily chart, I would have to agree with the bullishness that Barron's has bestowed on CBB. The PMO triggered a BUY signal in neutral territory. The SCTR and OBV lines are extremely bullish right now.

The weekly chart shows that a new trading range may be in the process of developing, with $4.15 acting as the base of that range. The weekly PMO is rising and is not in danger of getting overbought for some time. Notice that CBB has not seen $4.25 since it crashed in 2013. For safety, I would make sure that $4.00 is going to hold up as support.


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Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin

Erin Swenlin
About the author: is a co-founder of the DecisionPoint.com website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More
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