FiberTower Corp. (Nasdaq: FTWR) has had a tough year thus far, plunging from its high in January of $4.70 to its year-low of $.73, posting an 84% loss. From $.73 the stock had a very nice run up to more than $2 and has now settled back around the dollar range. Today, FiberTower closed up more than 10% at $1.16 and could be setting up for another reversal trend.

Here is a company that has had a tough time making a profit this year with a $49,382,000 net loss; however, revenue has continued to grow over the last three years. As technology advances, broadband wireless data and video services are commanding more revenue for companies such as FiberTower, making this a great potential discount stock.

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The chart shows:

• The 20 day MA and the 50 day MA crossed, showing a potential long-term reversal trend.
• FTWR seems to have closed that gap consolidating from its recent three day run for 167% in May and could be setting up for another run.
• The RSI is pointed up into the buy zone at almost 50; this could be a nice indication of a possible reversal trend.
• The MACD shows that the action has leveled off, but there is a distinct possibility for another golden cross to occur in the near future.
• The ADX is showing reverting positive and negative lines, meaning that price action is starting to change positively.

The Bottom Line

FTWR – FiberTower has been struggling to make a profit on operations for the past few years and to be honest there are many companies out there in the same boat. However, with new technologies comes new products and services; I think FTWR has what it takes to adapt to this new environment. If nothing else, the technical indicators are very promising and this stock could move on that alone.

Don’t forget to sign up for my free email alerts! You could have made a possible 23.8% on my SHMX alert yesterday morning and 26.5% on JCOF on Monday!

Good Luck,

Ian Decker

Disclosure: No position

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