Dallas, Texas 05/02/2014 (FINANCIALSTRENDS) – Level 3 Communications, Inc. (NYSE:LVLT) on the daily charts has witnessed a very good breakout on the back of very high volumes. The price action seen yesterday was on the back of low volumes and proves to us that it was just some profit taking by traders and not a sign of reversal. The stock has taken very good support at the level of $36 and seen a bounce back. The stock currently trades above its 50 day and 200 day moving averages.
The momentum indicators for Level 3 Communications, Inc. (NYSE:LVLT) have seen a very good upsurge which has given a buy signal and a bullish crossover and are currently in positive territory. Therefore even though the stock saw some profit taking in yesterday’s trading session the momentum is still strongly with the bulls. The relative strength index for the stock after being subdued have given a reversal signal and seen a good amount of pull back from lower level and we believe this would continue.
On the weekly charts for Level 3 Communications, Inc. (NYSE:LVLT), we see the stock had been subdued for the past couple of weeks while trading in a very narrow trading channel. The stock has now given a tremendous breakout and we believe if the stock closes at these levels on a weekly closing basis we might see the uptrend continue and the stock going towards levels of $45 in the very near term.
The momentum indicators along with the RSI for the stock on the daily charts have given a buy signal and confirm our bullish stance for the short term.
Latest Buzz:Level 3 Communications, Inc. (NYSE:LVLT) results beat street estimates and the company also revised its forward guidance which was considered to be very bullish for the stock. Analyst believe the revision of EBITDA margins for the current fiscal is a very positive announcement and the same could be seen in the price action that followed