This company is uniquely positioned to benefit from the move to 5G networks.
There are several technologies that will facilitate our ability to move to the faster 5G network speeds, and for the companies building out these networks it’s a big deal.
Today’s trade is a leader in one of the critical technologies for 5G networks.
In January, Corning (GLW) popped 10% when it announced better than expected growth in its optical communications business due to the build out of 5G networks.
At that time, the move up was met with a lot of resistance on the chart. As a result, GLW has only been able to consolidate.
However, this is a bullish sign.
Now, 5G is becoming more and more of a focus for investors, and GLW has a chart that is poised to explode higher.
A breakout over $35.50 should begin the next move higher. The multi-year high is $36.56, but that should break if $35.50 is cleared.
The weekly chart below shows how 2019 has created a range between $33 and $35.
The simple trade is to be a buyer over $35.50 and place a stop under $33.
If you’re and option trader looking to for a little more leverage or a lower cost of capital way to play this as a longer-term trade, the January 2020 40 calls would be an interesting way to do it.
A move to $40 over the next several months could easily happen, and that would yield a 100%-200% gain.
Rick Nartarian, Chief Investment Officer
The American Investor Daily