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CCI stock chart oversold but not large players volume yet.

Crown Castle Backlog Surging For 5G Small Cell Nodes

Demand for Crown Castle’s small cell nodes is surging higher. In the company’s earnings call on October 19, 2018, the company said, “In addition to the expected acceleration in new leasing activity, our pipeline of contracted small cell nodes to be constructed over the next 18 to 24 months continues to grow and currently stands at an all-time high of approximately 35,000, which is up 40% from this time last year. This increased activity is a result of all 4 of our large customers investing in their networks through towers and small cells to both keep pace with the current 4G demand environment and position their networks for 5G. Carriers in the U.S. are expected to lead the way and be among the first operators in the world to deploy commercial 5G services, with all 4 of the national carriers working to roll out 5G services currently. Underscoring how attractive the U.S. market is for communications infrastructure ownership, Ericsson estimates that 5G will account for nearly 50% of mobile subscriptions in North America by 2023 compared to just 20% globally. According to industry estimates, mobile data traffic in North America will increase by 40% per year between now and 2023, resulting in a staggering eightfold increase in the volume of data riding across mobile networks. This growth in data will require substantial densification of wireless networks. And we believe Crown Castle is in a great position at the center of these megatrends as our portfolio of well-located towers and dense high-capacity metro fiber assets remain the most cost-effective option for our customers’ deployment needs.”

Crown Castle Stock Chart

CCI stock chart oversold but not large players volume yet.

Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at $106.85. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $105.65, a stop order could be placed below this zone. What I don’t like about the chart is the absence of rising large players volume coupled with the negative Twiggs Money Flow. This combination suggests extreme caution before taking an entry until these indicators improve.

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