Centennial Communications (CYCL)

Company

CYCL 1-year chart CYCL 1-year chart

"Centennial Communications, based in Wall, NJ, is a leading provider of regional wireless and integrated communications services in the United States and Puerto Rico with approximately 1.1 million wireless subscribers and 397,800 access lines and equivalents. The U.S. business owns and operates wireless networks in the Midwest and Southeast covering parts of six states. Centennial's Puerto Rico business owns and operates wireless networks in Puerto Rico and the U.S. Virgin Islands and provides facilities-based integrated voice, data and Internet solutions. Welsh, Carson, Anderson & Stowe and an affiliate of the Blackstone Group are controlling shareholders of Centennial." (company website)

CYCL 6-month chart
CYCL 6-month chart

Buy

A few days ago I sold a lot of CYCL for a nice profit. Since then it dropped back much closer to the 50-day moving average and seemed to find support around $9.50. Let's see if I can make some more money off Centennial!

  • Price momentum (PPO) — fell during price drop
  • Relative strength (RSI) — ticking up after fall to neutral
  • Trend (ADX) — still very strong, although pointed down as a result of price drop
  • Volume — increasing since the beginning of April

Based on technical analysis, MarketEdge calls CYCL a "strong buy" in a "strong upward trend."

Sell

gain Bottom line
4%

This is the third time that CYCL has made a peak at or above $10.50 and then fallen back. Today was a sizeable gap down I fear this is the dreaded "triple top" reversal forming. Volume is strongly up, but the last jump came at the same time (maybe just before) an analyst upgrade, and earnings are due out in a week. Relative strength (RSI), momentum (PPO), and buying pressure (+DI) have all sharply fallen. It seems very prudent to wait this one out after taking a nice, though not spectacular, profit.