Level 3 Communications Inc. is an international provider of communications services with its headquarters in the US state of Colorado. The German subsidiary houses its headquarters in Frankfurt am Main. Level 3 operates a large IP fiber-optic network that can be rented by other telecommunications companies. In the following analysis, we will examine the company’s stock from a chart-related point of view.
Review (daily chart)
The upward trend, which is running in the trend channel, was confirmed at the beginning of June, which at the same time also led to a new all-time high. Currently, the stock just corrected a little more strongly, around 70%, making it a potential long candidate with speculation on a continuation of the upward trend as soon as corresponding entry signals form.
Outlook hourly chart
In the hourly chart, we can see the correction that is currently underway, which has yet to develop in our preferred trading direction. For a long entry, one should wait for the formation of a signal, for example in the form of a P2 (depicted in green). As can be seen, two scenarios are possible, whereby the first would be preferable due to the deeper correction and therefore better return.
The target is located in the price zone of $64 to $66. If the price considerably undercuts the trend channel and in particular the last low at approx. $57.00, one should desist from the long scenario for the time being (see daily chart, depicted in red).
Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.
Neither the author nor our company is invested in the securities and underlyings discussed at the time of publishing this analysis.
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