Level 3 Communications, Inc. (LVLT) – will the weakness last?

ISIN: US52729N3089

Level 3 Communications, Inc. is a communications service provider from the USA that is listed in the S&P 500. The company is among the leading internet providers worldwide, and operates a large IP fibre optic network. The founding of the group, with headquarters in Broomfield, Colorado, goes back to the year 1985. In the following analysis, we will examine the stock of the company from a technical point of view.



Since the high in June, weakness has been showing in the stock; the existing upward trend was broken and a downward trend was formed. The SMA 200 was also exited downwards. Currently, we are in the correction of the last downward movement.


LVLT daily chart with targets

LVLT daily chart with targets



In order to find a short entry into this stock, we should first wait for a clear, downward-facing signal (blue arrows in the hourly chart). Here, the entry can take place at the P2, with a stop loss at the P3 which will have formed by then. With the advantage of a more favorable stop, one can also apply the practice of trading from out of the correction.

The targets we are aiming for are located in the areas around 52 USD and 45 USD (green zones). If the price of approx. 59.40 USD (red line) is clearly and sustainably exceeded, one should abandon the short scenario.


LVLT hourly chart with outlook

LVLT hourly chart with outlook





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