Conclusion, Investment Implications, Strategy
Crown Castle International (CCI) appears to be resuming its March advance following a 13% correction from the early July highs. A sustained rise above the $157.00 area would help confirm this and target an 11% rise to $180.00. This is an Asbury Value idea.
Analysis and Rationale
Crown Castle International (CCI) owns, operates, and leases more than 40,000 cell towers and approximately 80,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service – bringing information, ideas, and innovations to the people and businesses that need them.
Chart 1 below plots CCI daily over the past year, highlighting its current retest of major underlying support at its 200-day moving average following a 13% corrective decline from the Jly 6th high. Not shown is that a number of market internals are starting to improve as CCI has been testing this major support, currently at $157.00, over the past two weeks.
A sustained rise above the $157.00 area would target a retest of $180.00.
Chart 1
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $157.00 area, a long entry price of $162.50 would provide a 1:3.2 risk/reward ratio (risking $1.00 to make $3.20) with an initial risk of 3.4%.
Table 1
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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.