Friday, June 15, 2007
Stock Chart: LVLT (Level 3 Communications) has broken uptrend line? (June 15, 2007)
Level 3 Communications (LVLT), has been on a nice 2 year uptrend. However, recently, it looks like it has gone below the two year uptrend.
Looking closer at a 5 month chart:
We see that LVLT is underneath both the 50 and 200 day moving average, a bearish sign. Another bearish sign is that the 50 day moving average looks like it is about to go under the 200 day moving average (The Death Cross ).
The only positive I can see is that the stock has not breached the $5.20 support yet.
Note on Trend Lines:
Yes, give a chart to several chartists, and they may draw trend lines a bit differently. However, in the case above, the trend line looks correct, as the line is validated by six different points along the line. The Trend line also nicely supports the 200 day moving average.
Alternatively, Corning Incorporated (GLW), might be a good Alternative Play (Annotated Chart)